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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (30190)	10/4/1998 9:55:00 PM
From: Terry Maloney	Read Replies (1) \| Respond to of 94695

Jim, I understood every word of this ... And I'm a rank beginner ... ;) Best regards, Terry

To: James F. Hopkins who wrote (30190)	10/5/1998 12:56:00 AM
From: Bull RidaH	Read Replies (2) \| Respond to of 94695

Greetings Jim, Your thoughtful analysis proves once again that the "efficient markets" theory will only fly in the classroom, where no one with real experience can refute it. However, the inefficient pricing of equities DOES provide tremendous opportunities from time to time. But of course, it's a Big Game of chicken...or Liars Poker...whichever you prefer. When will they take the stock to its fair value, and will you have any $$ left when they do. It's just like trying to survive in the wild, but we have far more enemies to face in this business than mother nature can muster. Here's to our survival, David

To: James F. Hopkins who wrote (30190)	10/5/1998 8:13:00 AM
From: Ilaine	Read Replies (3) \| Respond to of 94695

Hi James, re: Microsoft, maybe this is simplistic, but all the "little old lady" investors I know own Microsoft, for the reasons that Peter Lynch and the Beardstown ladies suggest, buy what you know, buy big names. My sister owns Microsoft and Coke, on the theory that they will always be in business, making money during her lifetime. It's a known quantity. There are thousands of stocks, thousands of mutual funds, and the stocks in the Dow have been around long enough to have had very public ups and downs, but Microsoft has never gone down. Yet. And, the company does keep making money. I don't know if you are aware that the United States Government's retirement plan, FERS, which invests in stocks, invests in, basically, as I understand it, the S&P500. Talk about artificial inflation of valuation. Every bi-week, like clockwork, Uncle Sam has to buy a huge chunk of the S&P500. Maybe they spread it out, I don't know. THAT'S got to make every big corporation in the USA want to be in the S&P 500! (Maybe that helps explain merger mania?) Open season for Federal employees comes, I think, only twice a year (not sure, maybe more, but they can only change asset allocation during open season.) So, that money keeps coming in like clockwork.