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To: Mark Kubisz who wrote (4007)	4/3/1998 10:22:00 PM
From: Joseph Colombo	Read Replies (2) \| Respond to of 18016

<<And why on earth should there be "a general market selloff?" Stocks don't sell off just because they are high, they sell off on bad news. Inflation is very low, sentiment is positive and money is pouring into mutual funds. Bad news that could derail the market is neither any more nor any less likely now that the Dow is at 9000 then it was at 8000, 7000 or 6000.>> Mark, You are absolutely right. And when things do start to change, I think we will have a lot of time to make dicisions. I am old enough to have been around in October 1987, but I think that kind of sell off only happens once every 50 or so years. The last time was 1929. Lets all take our money out of play in October 2037. Joe

To: Mark Kubisz who wrote (4007)	4/4/1998 12:18:00 PM
From: Doug	Respond to of 18016

Mark: Asset inflation is as important as other indexes of Inflation. In the 80's asset inflation took the form of real estate and what followed was a deflationary cycle. During the last 5 yrs asset inflation has taken the form of Stocks. The expected returns in the stock market are currently out of line with returns in other forms of Investment or GDP growth (3%). History has shown that such divergence will be corrected. I will rest my case by referring you to the Japanese Stock market which has been halved and still remains in that mode. The current "Money pouring" reasons you quote are no different to those of the Tulip mania days. I am sure that sensible Investors here would prefer periodic corrections in valuations rather than a crash correction that incidentally has also occurred in US markets.