Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (16604)	4/15/1998 11:43:00 PM
From: Jason Ghionis	Read Replies (1) \| Respond to of 94695

Reality is going to set-in sooner or later Papaya. Lets just hope that it takes the form of a gradual decline rather than trading halt after trading halt on the NYSE...

To: Broken_Clock who wrote (16604)	4/15/1998 11:55:00 PM
From: Oeconomicus	Respond to of 94695

PK, this market will interpret those remarks the same way it has comments from Buffet and Greenspan. Which one said something about "there is very little risk premium priced into the market"? That was taken to mean that there is little risk in the market. Buffet's comments about how current valuations may be justifiable if everything remains as perfect as it has been, to me a cautionary statement, was taken as bullish - current valuations ARE justified because everything WILL remain perfect. Likewise, Greenspan talked about how the strength in the US and the weakness in Asia MIGHT balance each other well enough so that the US can keep growing without inflation. What everyone heard was that they WILL balance perfectly, so there's nothing to worry about. Mussa's "a decline now would not be a major problem" will be taken to mean that we shouldn't worry, just buy the dip and take us to 10,000. Perhaps what he really meant was that something should be done now to reign in the market's exuberance, while a decline might not do too much damage, rather than letting the bubble grow even larger, to the point where a decline would be catastrophic. Regards, Bob