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To: IMPRISTlNE who wrote (11780)	7/26/1998 12:26:00 AM
From: umbro	Respond to of 164684

Which brings us to the cardinal rule for making big money in the midst of an asset bubble: Forget earnings and buy whatever swill the mob of greater fools may be clamoring for at the moment. Dow's highs don't reflect market reality RICK ACKERMAN MARKET DIRECTIONS Sunday, July 26,1998 c1998 San Francisco Examiner URL: sfgate.com The full article is worth the read, here's the lead in: SOME HOUSE that would barely qualify as a toolshed in some neighborhoods recently sold for $472,000 in Palo Alto. On the same day, shares of a well-known company listed on the New York Stock Exchange changed hands for 340 times trailing 12-month earnings. If someone held a gun to your head and ordered you to invest in one or the other, which would you choose? I suspect most would pick the house, even though it's in a neighborhood with ratty lawns and so-so schools. I'd probably jump on the stock myself. Admittedly, $114 is a lot to pay for shares of a company that earned just 41 cents in the last 12 months. That company, however, is America Online. While buyers may be lining up six deep to pay half a million dollars for starter homes in Palo Alto, they are flocking to the stock market by the thousands to bid more than 300 times earnings for AOL. Which brings us to the cardinal rule for making big money in the midst of an asset bubble: Forget earnings and buy whatever swill the mob of greater fools may be clamoring for at the moment.