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To: larry who wrote (9732)	4/10/1998 12:00:00 PM
From: Michael Collings	Read Replies (2) \| Respond to of 27307

<<I think that we are witnessing the shift of valuation to high levels and will sustain that level for very very long time. I can even expect to see PE multiples for DOW and S&P 500 reaching 40s in 10 years.>> And I think you need to study history. At market tops, the public always justifies ridiculous valuations on stocks with absurd rationalizations that "this time is different". They were doing it in 1929, 1973, and 1987 along with many other times in history. After the carnage in each of these markets, everyone finally realized their folly in their thinking. Everyone should take a look at a 75 year chart of the market and nothing more would need to be said. The last three years is nothing less than a mania and no one can say when it will end, but end it will. Bottom line, rational valuations are everything. In the meantime, have fun, but get out before the panic starts.

To: larry who wrote (9732)	4/10/1998 12:57:00 PM
From: Hiram Walker	Read Replies (3) \| Respond to of 27307

Larry, the X ers don't matter to the market,anymore than they did to the housing boom of the early 80's.just not enough of them to matter. Even though I believe they are more astute and wiser than generations before them. "Also it seems that most of us don't care about a crash anymore. We know that in the long run (say 30 years), to invest in the stock market eventually is going to significantly outperforming anything else." Including me, I am not scared,anymore,thats what scares me. Well, blindfolded on a cliff,and I would not be afriad. Your are right about valuations,they mean very little on the upside,but a whole heckuva lot if this party slows down or stops. Selling short in a mania is like doubting the future,its better to see t,and acknowledge it. There is no potential for a crash,but huge potential for a prolonged bear market is inflation heats up,and causes some of us to withdraw capital slowly. Who knows,the lack of fear scares me,is that an oxymoronic view? Hiram