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To: B. A. Marlow who wrote (1555)	6/2/1999 12:54:00 PM
From: Danny	Read Replies (2) \| Respond to of 2743

BAM and Rob, Re: NAPM data. I now think it is highly likely that Fed is going to hike the rate for a 25 point basis in the June meeting. It seems that market is anticipating such move and is trying to price itself into it. Due to the volatile nature of the internet sector, this correction phase has been become a panic sell-off. I view this as an excellent buying opportunity for us long term investors. The underlying fundamentals of this economy: strong growth, low inflation, low interest rate remains intact. What Fed is doing here is to take back some of the rate cut to keep the economy and inflation in balance. But as long as U.S. economy is growth at a healthy rate, the future for the internet is tremendous. Frankly, I would be more worried about a deflation than inflation, especially when internet is concerned. The only thing that will definitely ruin the party for longs, at least in the 3-5 months short period, is that Fed decides to hike the rate by 50 point basis. That will crush the entire tech sector, and I view it as extremely unlikely. Otherwise, we should enjoy a good July/August earning season rally. Danny