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To: Anthony who wrote (2274)	3/27/1998 2:02:00 PM
From: Paul Shread	Read Replies (1) \| Respond to of 3111

Anthony: The street either loves tech stocks or hates them -- there's no in-between -- and right now tech stocks are just coming out of a big correction, the market is in love with them, and therefore I think we're not likely to see a sizeable tech correction (NASDAQ -15%+) until this summer (although I wouldn't rule one out when the IRA money runs out in mid-April and the market gets a closer look at MSFT earnings on April 20). Of course, if the Fed raises rates next week... I agree with you on valuations -- all good news factored in, they seem historically pretty high right now (the Fed's own model shows a fair value of S&P 900 -- S&P earnings divided by 10-year yield). There surprisingly are a few people who say the market's fairly valued right now (an article in the Wall Street Journal the other day said the market feels this way particularly about tech stocks). I don't agree. Everything I want to buy is 20% overvalued (in my opinion), so I'm sitting on a pile of cash right now. Good luck to you, and be patient. I've found that stocks always become more fairly valued at some point. As Buffett said in his annual report, wait for your pitch and you'll hit for a higher average. It's no fun waiting, but either earnings are going to come up to the value of the market, or the market's going to come down to earnings. Paul