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To: Sigmund who wrote (8768)	11/29/1998 1:16:00 PM
From: AreWeThereYet	Read Replies (2) \| Respond to of 14266

Sigmund, >> I wouln't be very concerned for many reasons: << Remember what happened prior the Summer correction? Internet Stocks behaved similar to what we see now. >> 1. Internet is for real and growth rates of 300% justify high multiples. << I agree that Internet has bright future if not the traders bring the valuation to ridiculous level. It need a growth rate of 1000% or more to justify this multiple. Multiple??? Majority of them is still losing money and no earning until 200X!!!!!!!! >> 2. Overall market is likely to remain strong into early next year. << Ditto >> 3. Internet stocks probably represent only a miniscule percentage (under 1%) of total market capitalization. So a downdraft there is not likely to cause much of a problem for the overall market although it will impact certain investors big time. << No argument here. But it is an indication of the psychologic level of the investors (or gamblers). The economy fundamental - "Corporation Earning" is not improving but the multiple is expanding... this doesn't sounds very healthy to me. Next year, we will see more earning contractions and the y2k problem will also finally affect the bottomline of some industry. The good news is that we will probably see series of new highs before any sizable correction. So in general I agree your opinions. aC