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To: HG who wrote (50354)	4/14/1999 6:27:00 PM
From: KeepItSimple	Read Replies (1) \| Respond to of 164684

>Don't we all subscribe to the thought - if it is working profitably, >keep using the same strategy ? Yes, I agree. If we all just keep buying, and we all agree not to sell any shares at a price lower than what we each paid for them, we will surely be on the steady path to wealth. Oh, wait, I just described a pyramid scheme. My fault.

To: HG who wrote (50354)	4/14/1999 7:10:00 PM
From: GST	Read Replies (2) \| Respond to of 164684

HG <In Oct it was the nervousness and memories of the proverbial Oct crash !> Huh? In October we went to the brink of a fully fledged global financial meltdown, averted only by the artificial injection of gargantuun amounts of money into the financial system. It was a little more than a case of 'bad memories' spoiling the mood of the market. IF LTCM had been allowed to go down -- it would have been game over. Virtually every hedge fund in the world would have been toppled -- taking most of our financial system with it.

To: HG who wrote (50354)	4/14/1999 8:24:00 PM
From: Greater Fool	Read Replies (2) \| Respond to of 164684

Applying this concept to financial world, people need a reason to stop believing in the internet magic. Beautifully put. And I'm wracking my brain trying to figure out what sort of event will be strong enough to make the fund flows significantly reverse. However, both IPOs and the release of locked-up shares will dilute the per-share valuations. Maybe the end will come with a whimper and not a bang, as these dilutions erode the returns. Maybe eventually the dilution will happen faster than new money flows in, and share prices will decline. This might trigger a downward spiral. But there's an incredible amount of money that theoretically could flow into the sector. Someone on this thread pointed out that the market caps of all the internets are less than Microsoft. So the upside is staggeringly high.