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

To: Mary Cluney who wrote (27414)	12/24/1998 5:48:00 PM
From: David Rosenthal	Respond to of 70976

Mary, Chances are the market will correct to some degree somewhere along the line in this huge run up - but it will only be a correction because we are in the dawn of civilization where technology will improve the lives of people all over the world. That is one trend that is not going to change. The human condition will continue to improve - there will be corrections - but the trend is definitely on the rise. Stirring speech but this sounds very much like another way of saying that "this time is different." I take a more pragmatic approach. There is a lot of cash flowing into the markets (because of this great bull run). Many of the old valuation models have been violated by the prices of many stocks. Looking at the market cap of the Internet stocks shows a total disconnect between the business, its prospects and stock prices. Historically at some point there has always been a reversion to mean for the indexes. This will happen regardless of technology and the human condition. Look at Japan. They have great technological companies but their market was overvalued and now they have been mired in recession for a long time. At some point cash stops flowing into bull markets. Dave

To: Mary Cluney who wrote (27414)	12/25/1998 1:42:00 AM
From: Skeeter Bug	Respond to of 70976

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