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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: David Howe who wrote (12506)	6/3/2002 12:53:10 PM
From: Jack of All Trades	Read Replies (1) \| Respond to of 19219

Wait until they have to acct for their Stock Options to their employees then you will see they don't make money... I had a friend who makes $120K+ on the East Coast interview with MSFT in Redmond, they wanted to pay him $50K plus options...

To: David Howe who wrote (12506)	6/3/2002 1:01:15 PM
From: Steve Lee	Respond to of 19219

"I wouldn't invest in equities like this if interest rates were 10%, but with Fed rates at 1.75%, equities are a better deal." Firstly, it's not a valid comparison because your Fed bond is unlikely to get chopped in half overnight. Secondly, what happens to the equities according to your valuations if fed rates go up? Or do you think they will never go up? Is it worth quibbling about the difference between the 4.8% and 1.75% returns that you quote, when the average equity regularly moves a few percent in any given week? I would say the capital appreciation/depreciation potential is the major element to be looking at when investing. Bonds are generally thought to be safe. They don't deserve to generate the same level of income asked of equities when using your PE valuation model (not that the shareholder is likely to see those incomes - they tend to get scalped off by the company officers).