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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: semi2000 who wrote (4199)	12/30/1997 8:54:00 AM
From: Proud_Infidel	Respond to of 10921

OT Sudhir, At this point, there appear to be several forces behind the strength of the large multinational defensive issues. 1)Uncertainty has driven everyone away from anything whose eps may be adversely imapcted by SEA. 2) Growth for these cos. has been very good over the past 20-30 years. Although you have to ask yourself if you are willing to pay any price for growth. As of now, most MM's are. 3) These cos. are represented in all of the major(important) indexes. We no longer have investing on WS, we have "attempted replication of an index." Sad, but true. 4)One word: lemmings. There are probably several others I didn't mention. IMHO, this cycle of incredibly priced multinationals is coming to an end. If it doesn't, I am scared for the entire market. It's akin to building a skyscraper. The higher one bulids, the farther out at the base the building needs to be. For the past several years, this has been a very narrow market with the firms you mentioned accounting for an inordinate amout of the gains on the S&P. That to me, says the structure we are building is getting top-heavy and is in danger of collapsing. Regards, Brian