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To: Reginald Middleton who wrote (15383)	12/24/1997 3:45:00 AM
From: Charles Hughes	Read Replies (1) \| Respond to of 24154

>>> Actually the market is quite inefficient. This is due to a proportionately high concentration of information/knowledge. Luckily, we have those who believe in efficient markets to supply liquity (an institutional client of mine made that comment over dinner last Thursday, I liked it for it smacks with the truth). <<< I agree, I think. (Correct me if you don't think I do ;-). Extreme flows of information and abundance of forward-looking analysis combine with arbitrage, news and perception management, illegal trading practices, fictitious technology trends and automated trading to create increasingly chaotic movements and side-effects capable of dwarfing rational (linear) movements for months or even years. Not forever, however. I know you won't agree with the next bit, but it's markets like the one the last couple weeks that make me believe in old fashioned assets, P/Es, real earnings, established businesses, and money in the bank. All those papers on the new analytic techniques are mostly going to be useful as toilet paper next year, unless the Fed quickly realizes that disinflation is a bad thing. If I did want to gamble I would buy puts on the next big peak in the market. In fact it might be too late. But I did get out of all my stock except a token round lot by a week ago. Chaz