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To: John Madarasz who wrote (6228)	7/4/2001 11:06:16 PM
From: AllansAlias	Respond to of 209892

Yea, read that over coffee this morning. My only strong memory of the article is the NASDAQ total earning's chart -- that's a good laugh. Yes John, a great day off. Hope you too had a memorable day. Allan

To: John Madarasz who wrote (6228)	7/5/2001 1:13:44 AM
From: Moominoid	Respond to of 209892

The analysis of inflation in that article doesn't make any economic sense to me. Stock prices are low when inflation is high because inflation reduces stated profits (depreciation/investment effect) and discount rates are high to reflect the inflation premium. In fact reduced wealth due to lower stock prices should have a slight dampening effect on goods and services inflation. It is interesting that the 1999 peak in the Dow is only double the 1966 one on an inflation adjusted basis after 33 years of economic growth. Doesn't sound so overvalued.