Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lee who wrote (3792)	10/28/2002 2:10:02 PM
From: FJB	Read Replies (2) \| Respond to of 25522

I believe the markets in certain stocks are efficient, while the vast majority are not. There is a gaming element to stocks that should not be underestimated. This gaming element was responsible for the bubble. Only in the very long term, does valuation actually conform to the genuine prospects of a company, sector or economy. Truer words were never written. You are correct.

To: Steve Lee who wrote (3792)	10/29/2002 7:58:09 AM
From: Road Walker	Read Replies (1) \| Respond to of 25522

SL, re: I think you are assuming that the efficent market theory has some truth to it. If so, In Spring 2000, why hadn't the more informed investors brought the market to a point at which they anticipated the coming tech wreck? The PE of the SPX actually started to decline sometime in late 1998 (working from memory here), while the actual earnings were still increasing at a exceptional rate. So it could be argued that the market was somewhat efficient in that it started to pay less for a dollar of earnings in anticipation of the end of the business cycle. John