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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?


To: Ahmed Elneweihi who wrote (40488)3/21/1999 9:26:00 AM
From: Crimson Ghost  Respond to of 95453
 
The US economy is running much closer to full capacity than 2 years ago and P/E ratios for big cap stocks are a lot higher higher. The market is 28% overvalued according to the Fed's model.

A rise in oil prices to $18 would be no problem for a normal stock market. But with valuations by far the highest ever and the economy running at full capacity, $18 oil will certainly be a problem for THIS stock market. Not the end of the world, but a significant problem.