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To: Lucretius who wrote (20089)	4/23/1998 12:33:00 AM
From: Chuzzlewit	Read Replies (3) \| Respond to of 95453

LT, if you're looking at gold, I think you're fooling yourself. Gold is traditionally a hedge against inflation (which we don't have) and that's about it! Long term interest rates are lower now then they were a year ago, and that's one of the three major market drivers. The other important one is the outlook for earnings, and here I'm frankly confused. Earnings growth is nowhere near as robust as it was a couple of quarters ago, but the market seems to have shrugged this off. Perhaps the major driver is all of the new money pouring into the funds. These contributions need to be invested somewhere, and perhaps as long as earnings grow (although not as rapidly as they had in the past) valuations will continue to grow. So I simply don't see the economic basis for a meltdown. A more likely scenario might be that the market stays relatively flat with a rotation out of large cap stocks into smaller domestic companies with little Asian exposure. TTFN, CTC