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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (6183)	7/4/1998 1:05:00 PM
From: Joseph Beltran	Respond to of 10921

Zeev, You raise a very good point about the "nifty" stocks....It always amazes me when I hear these analysts on cnbc and elsewhere saying that the market is overvalued and toppy...not once have I heard an analyst "qualify" their "definition" of "market". The fund managers almost exclusively talk about buying G.E., COKE, and other selected big cap names. The fact of the matter is, the money going into u.s. equities for the past year or so is going almost exclusively in those big cap names. Fund managers operate under the impression that there is a degree of "safety" in those issues. As the value of those stocks increases, index funds jump on board, creating an even greater "bubble" effect. The energy and broader technology sectors have been in a bear market for the last year. The mentality of these fund managers is simply this: if the outlook for the stock appreciating in the next 3 months is not positive, I'll take my money elsewhere. regards

To: Gottfried who wrote (6183)	7/5/1998 12:45:00 PM
From: Alan Gallaspy	Read Replies (2) \| Respond to of 10921

Gottfried, Regarding your post on toppy indices and rotation out of the leading nifty stocks, do you feel that such a rotation can occur in an orderly fashion? I am of the opinion that if serious money starts leaving the nifty stocks, then we are all in trouble even if we have already been beaten up pretty badly already. When is the last time there has been a significant and protracted divergence in direction between the S&P 100 (representing nifty) and say the SOX or NASDAQ composite?