Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : America On-Line (AOL) -- Ignore unavailable to you. Want to Upgrade?

To: Steve Robinett who wrote (5414)	2/22/1999 10:57:00 AM
From: Brian K Crawford	Read Replies (1) \| Respond to of 41369

<< You comment, there will be inflows into the market til 2008 at least... I assume you mean the baby boom inflows. Of course I agree. Indeed, that liquidity may keep the entire market overvalued for some time (and later make it sell undervalued as boomers withdraw retirement money) but what does that have to do with any particular stock, for example, AOL? >> I believe a huge chunk of the future inflows will come thru S+P 500 type index funds. The index is cap weighted. Success at the company level will cause greater representation in the index. Therefore the favorable bias we have seen for big cap growth may continue, and even accelerate. It will be "institutionalized". So buy the dips for a few more years. Brian

To: Steve Robinett who wrote (5414)	2/22/1999 10:01:00 PM
From: Pruguy	Read Replies (1) \| Respond to of 41369

this is what I mean by price is irrelevant.....I read a ton of research, and not one argument supporting the valuations of todays high priced issues would make any sence if they were written 10 years ago....We are in a new era now....If a company in the S&P continues to grow quicker than the market as a whole, they will garner a greater and greater percentage of the index money....This will cause the weighted demand to increase and push the share price higher....This phenomenon unwinds itself when a company begins to slow its growth rate....then it becomes a smaller weighted portion of the index and future inflows are not as heavy as it becomes a lighter weighted part of the S&P