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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Grommit who wrote (6654)	4/9/1999 3:58:00 PM
From: cfimx	Respond to of 78579

i think what NONE of us are anticipating would be a VIOLENT rally in the small caps to catch up ( alongside a rise in the biggies) FOLLOWED by EVERYTHING coming undone. This valuation gap between small and large NEEDS to get reconciled, one way or the other.

To: Grommit who wrote (6654)	4/9/1999 4:13:00 PM
From: Freedom Fighter	Respond to of 78579

Grommit, >>4. However, a continuation of the overvaluation is also quite possible, and perhaps the most likely.<< To be honest I hope you are wrong. I would like to buy great American corporations at a price that makes some sense - and soon. Somehow I suspect that there are inter-relationships between stock prices and economic activity that are self correcting (cost of capital and return on capital) and/or extremely high stock prices without offsetting consequences are a sign of much too easy credit that will eventually spill over. This is a very long and theoretical discussion though, and probably belongs in another thread. >> And with that amount of time, and with the FED taking actions to ease overreaction, there will be no major correction.<< I don't want to get into too controversial an area (especially when I hold such a minority view) but I think the Fed's reputation and AG in particular is not deserved. Let's wait and see what the consequences of the 90s party are and then we'll let history judge this Fed and AG. Wayne