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

To: Haim R. Branisteanu who wrote (32493)	10/27/1998 7:32:00 PM
From: Tom M	Read Replies (1) \| Respond to of 94695

Hi Haim, haven't been following lately, what did the Fed have to say today? Like yourself, I'm disgusted by this farce of a free and open market. We obviously don't have one, but I'm still not buying into historic valuations with historic bad fundamentals. Computers drop in value, cars drop in value, real estate periodically corrects, and the price you paid for a stock used to have some tangible basis in relation to its earnings - this is pure pyramid caused by mutual fund holders not having a clue what they're paying for, and the gov't trying to protect the most massively leveraged speculators. The investors who do their homework being forced to pay for those who don't. Why the gov't intervenes instead of letting it correct to where you don't have to worry about your stock getting cut in half or more I don't know (yeah,yeah, consumer confidence). Many stocks took a huge hit Oct '97, and many double that lately - but "everythings OK". Just keep putting your money in, and wait for the next 30% drop that won't be "real" either. If we have to wait for the average mutual fund holder to realize what they actually own, we may have a while to wait. While the rewards may disproportionately exceed the earnings, the risks seem equally historically disproportionate (ie funds using 20:1 leverage to artificially create inflationary demand for stocks, now with the Fed's multiple blessings). Just thought I'd let you know you're not alone, but bearish enough to short against US gov't intervention I'm not ;-) regards, Tom