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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Greg h2o who wrote (34233)	2/10/1998 3:45:00 PM
From: sepku	Read Replies (1) \| Respond to of 61433

>>>KO is trading at 40x earnings and they'll be lucky to grow earnings at 18% this year. I don't care what kind of technological advances we have, the math doesn't work.<<< I never said anything about KO -- all I deal with are tech stocks, so I have no idea what the correct valuation for a soda-pop company is. >>>It is impossible to convince me that the market-leading stocks (ie. the 10th of the S&P 500 that is moving the market higher) is not overvalued.<<< The market-leading stocks are almost always "overvalued" relative to the rest of the market, yet lead the market higher -- that's why they're termed "market-leading", right? And being such, they have the tendency to drag the rest of it along for the ride...the "trickle-down" effect. >>>I'm not saying technology isn't a wonderful thing, but there's a reason the market has moved sideways for the last six months...<<< Asia. >>>if you think the recent full employment won't eventually lead to higher inflationary figures, then I think you're missing a key component of the economic picture.<<< Ah, but "eventually" can be such a looooooooong time...and by then, other factors will likely be to blame as well. Also, considering how low inflation is currently, "higher inflationary figures" may not be so bad -- in fact, those figures could be marginal. Greenspan and the other great minds seated on the Fed have admitted that they are re-evaluating their role in monetary policy. They are very aware that we may have entered a new era economically, requiring new perspectives and strategies (time to combat DEflation?). In time, all things change...the Renaissance, Industrial Revolution, and so on. What will this era be termed? The Age of the Internet? Technology? I wonder what was considered "overvalued" back then... Style Pts.

To: Greg h2o who wrote (34233)	2/10/1998 5:20:00 PM
From: Daniel W. Koehler	Read Replies (1) \| Respond to of 61433

Greg <<Oh, and if you think the recent full employment won't eventually lead to higher inflationary figures>> I think it's the Phillips curve phenomenon you are referring to (inflation / employment trade off) has been discredited in recent years as has much Keynesian dogma. Especially since the Phillips curve doesn't factor in new job creation, productivity increases and the role of the global market competition on labor prices. Just my 2 cents worth. :-) Daniel