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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (26686)	11/24/1998 4:22:00 PM
From: 16yearcycle	Read Replies (2) \| Respond to of 70976

I always get a sick feeling when it becomes very, very hard for me to easily explain a stock price. The market's day to day moves are based on psychology. Many folks don't do well because they know this, but overestimate their ability to read fundamentals. They will interpret well grounded moves on mass hysteria, and maybe even get others to believe them. We are now starting to get some sign of hysteria. If one area of the market is much too high, ie, net stocks, biotechs, that is not so bad. But when you see many, many pockets of overvaluation, and then you see activity where money comes in to properly value undervalued stocks, but the other puffed areas respond by going higher still, it is a big warning. It is happening now and for the last few days. It is just beginning though. A selective pullback would be great to allow fundamentals some time to catch up. Great American businesses become more valuable over time. But their quotational value could use a breather now.