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

To: Proud_Infidel who wrote (6494)	8/5/1998 8:38:00 PM
From: Jim Willie CB	Respond to of 10921

can anyone provide hard data as to the percentage capitalization of Dow 30 Industrials versus the entire NYSE total cap? how about S&P cap to total NYSE cap? how about DJIA + DJT + DJU versus entire NYSE cap? I cannot put the collection of godzilla caps into proper proportion on dollar value... I realize MSFT, CSCO, INTC are in S&P500... just looking for some perspective earlier today at 3:25pm I said rally was pathetic... spoke too soon, as that time marked the beginning of an impressive closing rally that left my mouth open two key ingredients to valuations... cannot look only at earnings PE or earnings growth rate... MUST look also at backdrop of interest rates... reasonable PE's with 7% rates are much lower than reasonable PE's with 6%... important fact often glossed over is that reasonable PE ratio moves exponentially upward as interest rate drops... for yucks check principal on a 7% bond if rates drop to 6%, then 5% and your mouth will hang open however, I agree with all messages on danger of tunnel vision toward godzilla cap funds... they say on Wall Street that the same method is used until it fails... GE and MSFT are not cheap to me... Cisco is another story altogether despite 50PE... it had a 40PE from 1993-1997 and is now cheaper than before, since CISCO owns the internet business for routers still need greater fool to show up in a few months to turn a capital gain on the godzillas / Jim Willie