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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (57846)	5/4/2001 3:49:13 PM
From: Dave	Respond to of 74651

The overall reaction to the bad economic news this morning leads me to conclude this is a new bull market and not just a bear market rally. Dips are being bought. Here's another take on this. Now that stock splits, dot-com spin-offs, and companies who mention Linux are no longer the speculative vehicles of choice, people are speculating on the Fed Put. They are fervently betting their money (and their clients' money) that bad economic news will mean lower interest rates, which will mean a rise in stock prices, because, uh,... well they haven't figured out anything beyond this. It doesn't matter to them. They are speculators. They expect stock prices to go up because the economy is bad. This is twisted logic and the speculators will pay the price for it. Or hey, it could be just that "this is a new bull market." What do I know. Maybe this is really a New Era and old concepts like macroeconomics and earnings-based equity valuation no longer apply. My money is betting otherwise though. Dave