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To: allen v.w. who wrote (4251)	1/19/1999 1:40:00 PM
From: drakes353	Respond to of 5102

allen: Well, looks like you need to be saved from yourself.....call Vanguard, put whatever you have left in their Index500 Fund. It's your only hope. drakes353

To: allen v.w. who wrote (4251)	1/19/1999 1:56:00 PM
From: Kailash	Respond to of 5102

allen - I remember when it used to be laughed at to think SI boards could affect a stock; now everyone knows they can, and in a big way. The main effect, however, has not been to drive the price down but to pump it up to levels any serious market analyst would consider grossly overvalued. Many longs argue that a stock will go up because a lot of people are buying it, because the sector is hot, that earnings don't matter, that the sky is the limit. This has driven stocks up to unprecedented levels, especially internet stocks. The steady rise makes investing seem easy. SI and other boards have drawn a large number of otherwise cautious investors into a risky part of the market. There is no getting away from how risky most of the internet stocks are; many could fall 75% and still be overvalued, because earnings will have to count eventually - earnings is the whole point of the stock market. Of course longs are mad if someone points this out. Precisely because the stocks are so overvalued, they are vulnerable to being talked down, just as they have been talked up. Who is being responsible? I honestly believe internet stocks will fall, and that those who deny this are either deluded or deliberately misleading people. Of course I agree that shorts can drive a stock down, and that this in some cases may hit non-speculators. Most of the complaints, however, come from purely speculating longs in a war of words. However, whether shorters talk a stock down or not, at times it will go down. At current market valuations, apparently at the top of a market bubble, there are large swings and big profits to be made either way. Longs should be grateful for people who alert them to the likelihood of a downturn. Kailash