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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: dwight vickers who wrote (21448)	3/28/1998 9:56:00 AM
From: Terry Maynard	Read Replies (2) \| Respond to of 42771

OT: Changes in Japan April 1: mercurycenter.com Terry

To: dwight vickers who wrote (21448)	3/28/1998 10:14:00 AM
From: EPS	Read Replies (1) \| Respond to of 42771

(OFF TOPIC) Dwight, Sorry I am not an economist by training and maybe I made some horrible mistakes. What I was trying to say was that: One could argue that excess liquidity chasing financial assets could be helpful in the process of keeping inflation under check -as its ends up not chasing other (material) assets- This leads to the conclusion that commodities are cheap at these valuations (Hint: Some of our heroes like Soros et al are all busy buying commodities right now.) This must be related somehow to the psychology and composition of the market, i.e boomers trying to save for retirement etc, since in a less skewed model one would have expected to have led to inflationary pressures sooner. The small % of unemployment at this inflation levels as you know has caused to revise other 'principles' on the optimum rate of unemployment for a non inflationary economic model. Salaries have been going up but nothing that is even close to the 70's of course. Here again the low power of the unions and the globalization of the economy could be new factors to be taken into account..But then Krugman has nice arguments against this also. There is also the argument that historical valuation models are outdated and do not account for the growing efficiency of the economy. It is also not clear to me what the DOW really measures! I think we (you and me say) are probably more efficient by several factors than we were some years ago and there is the magic of compounding at work here as well). Don't take me wrong I am also very worried....but I have more confidence in Greenspan than in some of these money managers.... Nice to talk to you and good luck! Regards Victor