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To: Haim R. Branisteanu who wrote (103327)	5/18/2001 5:23:03 PM
From: pater tenebrarum	Read Replies (10) \| Respond to of 436258

Haim, i agree...in a way, when you push up asset prices, you are shorting the confetti you use to buy the assets with. recall that in the 50's and 60's, the established conventional wisdom was that stocks are a HEDGE AGAINST INFLATION, and that is in fact true for all those companies that hold assets that inflate along with the inflation rate. of course tech stocks and similar deflation proxies are a different kettle of fish, since their assets aren't worth anything...it's only their know-how, and their ability to SELL same profitably that one can try to put a value on. this is also the reason why currently the inflation proxy stocks are by far the best performers...in descending order, i.e. the better a hedge for inflation a company's assets are, the more demand for its stock is currently noticeable. the market seems to have accepted the notion that the Fed is trying to inflate it's way out of the situation, and that's why you see gold, oil, paper, steel, copper, etc. stocks go bonkers.