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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Victor Lazlo who wrote (17771)	3/19/1999 8:14:00 AM
From: Zeev Hed	Read Replies (1) \| Respond to of 18691

Victor, the market "eventually" do go back to valuing stocks on their earning potential relative to other assets' returns, it just does not happen at once because mass psychology does not change that fast. At some point, the various index funds are going to go out of favor after they show lackluster returns for a number of years. That is one of the many reasons I believe we may return to a period like the one we experienced in the 17 years 1966 to 1982. By then we will go through markets in which the Wilshire 5000 will be discounted some 20% to GDP rather than being almost 40% higher than GDP, as it is now. Zeev