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Technology Stocks : SAP A.G. -- Ignore unavailable to you. Want to Upgrade?

To: Sam Citron who wrote (2443)	9/2/1998 12:36:00 PM
From: Jay8088	Respond to of 3424

Yes. I do think the nifty fifty psychology is in operation here. People have a lot of faith in 'blue chip tech stocks' like CSCO, MSFT and INTC - and even DELL. These are some of best companies in the world. However back in 73-74, so called nifty fifty stocks attracted similar complacency at very high valuation. I am also concerned that DAX is in a precarious technical position after rallying for the last 2 years - with SAP as THE star. Even Warren Buffett built up a heavy cash position going into '73. During '74 collapse he states that he went into 'an orgy' of buying his favorite stocks. So the time to buy is when such extreme collapse happens - not when it is just getting nervous.