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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: High-Tech East who wrote (45784)	10/6/2001 6:15:53 PM
From: Kevin Rose	Respond to of 64865

I do not disagree with the gist; pain will be felt by a lot of us, whether or not we are laid off. However, the question is: how much of this gloom is already priced into the market? We see stocks like NT and SUNW releasing really gloomy results, yet they go up. We see people with 50%, 60%, 70% or more losses, yet they stay in the market. We see predictions that gold will reach $1000, yet it has stayed relatively stable. Why is this? No one knows for sure, but I believe the following factors influence: 1) Stock ownership is now a part of life. It was not a 'fad'; Americans love the idea of owning companies that they believe in. Many also like the idea of knowing what is going on, and learning how to value investment opportunities. I dare say that more Americans know how to calculate a PE, EPS, etc than ever before. Hard financial lessons have been taught, but I believe Americans can absorb these lessons and come out all the wiser. 2) Oil, energy, commodity, wholesale prices are all under control. 3) Inflation is not existent. Deflation is a concern, but as long as liquidity is pumped in, it should stay under control. 4) Monetary policy is more sophisticated. The Bush administration has abandoned the far right, and is much more willing to step in when necessary to shore up: liquidity, airlines, tax breaks, unemployment benefits extension, etc. Unless we see more devastating attacks, I believe the bottom is being put in right now. However, people should exercise caution; take some profits on news-based runups, keep cash ready for the inevitable news-based setbacks. Never put yourself in a position of having to sell, or finding yourself long in companies that you know little about or have no faith in. We may test the lows again, especially when the devastating unemployment numbers hit home. But, IMHO, we will bounce back.