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To: Toby Zidle who wrote (557)	3/15/1999 12:11:00 PM
From: trouthead	Read Replies (1) \| Respond to of 1169

It is an ongoing and fairly interesting discussion about old rules and new reality. I have a slightly different take on the issue. I think the old rules still apply. What is different is the investor. There are more investors with more money (401k) who are looking long term with more knowledge about the companies they invest in than ever before. Supply and demand will push the overall market PE higher than its historical levels. The greater number of watchful investors will keep it higher as they look for value. Value that is informed by a long term view that rewards growth companies. Which allows for a raising of the comfort level regarding the PE of the company owned. Pull backs are buying opportunities for people who own quality stocks. The internet sector is one that will eventually cool off. There will be some winners and many losers, but those winners will have to be solid money making companies. Throw in the growing number of daytraders and you get a market that is volatile and in some areas occassionaly exaggerated. But over time the market is still about making money. Only the number of investors and the time frame has been changing over the last ten years. jb