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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Joey Two-Cents who wrote (6233)	4/5/1998 8:57:00 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 18691

Interesting tidbit from Wall Street Week - for 1997, ValueLine stocks rated 5 for timeliness outperformed those rated 1. In fact the 1 rated stocks underperformed all other groups except the 4s. Since Value Line favors stocks with strong earnings momentum, but the market favors stocks with no earnings, I guess I shouldn't be surprised. Bob

To: Joey Two-Cents who wrote (6233)	4/5/1998 8:57:00 PM
From: Roger A. Babb	Read Replies (3) \| Respond to of 18691

Joey, the "talking heads" on TV and in the papers are saying that the following Greenspan statement was bullish: >Federal Reserve Chairman Alan Greenspan said Thursday that stocks have risen so much because long-term earnings expectations have been revised up sharply. Greenspan said current stock prices reflected only a ''relatively small amount of (risk) premium''. The following day the Dow reached 9,000 for the first time, capping a week of reports showing the economy was strong but not overheating.< They said Greenspan was implying that stock investments have only a small risk. NOT TRUE. What he meant was that stock are so highly valued that future earnings growth is already built into the prices so that there is little upside premium left to the investor for taking the risk.