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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (4795)	7/15/2002 9:07:39 AM
From: deeno	Read Replies (2) \| Respond to of 24758

CNBC is there for entertainment, as with most other forms of broadcasting, thats all. Its not so much what should be done that I have been asking, but WHO (which companies) is it that I should be looking at? Who has been planting those seeds? Which company has figured out (in your opinion) the future? Who is providing the capital goods your solutions require? Who has the the money to compete? Im not looking for the timeing just investment suspects that you feel "see the light" or is it NO ONE so far has your vision at the current time. Thanks Deeno

To: ahhaha who wrote (4795)	7/15/2002 9:40:51 AM
From: DMaA	Read Replies (1) \| Respond to of 24758

Have any respect for Authur Laffer? By dividing any given quarter's economic profits by the average daily 10-year note yield, we can calculate capitalized economic profits, which is an estimate of U.S.A. Inc.'s market capitalization. Carrying out this calculation quarter by quarter back in time, we have a time series of what an investment banking firm would estimate the market capitalization of U.S.A. Inc. to be. And, in addition, we have actual market capitalization data in the form of stock market indices. Comparing actual stock data with capitalized economic profits (see chart nearby) yields a measure of either overvaluation or undervaluation of the market, or perhaps expectations of things to come that aren't already in the data. Just viewing the plot of the two series illustrates the remarkable closeness of fit. . . . The bottom line is that stock prices are currently substantially undervalued -- some 48% by my measure. Barring some highly unlikely policy changes that would collapse profits and push interest rates a lot higher -- such as higher tax rates, across-the-board protectionism, wage and price controls or a complete reversal of Federal Reserve Board policies -- the pessimism prevalent today is entirely unwarranted. In fact, from where I'm standing, it looks as though we're in for a very nice market indeed. online.wsj.com aries