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To: David Petty who wrote (19792)	6/3/1999 10:37:00 AM
From: Roy F	Read Replies (1) \| Respond to of 41369

Interview with Art Hogan, Chief Equities Strategist, Jefferies & Co. stockhouse.com <snip> StockHouse: The Bloomberg US Internet Index has their stocks down 30% from mid-April … Art Hogan: Yes, but the 52 week moving averages would have the correction. If you wanted to get to the lows, you would have to have another 80% on the downside. Typically, the Internet stocks correct between 25% and 40%, so if we are down 30%, perhaps that correction is over, and when they finish the correction stage they make new highs. There have been five of those, this was the fifth. Did today signal the bottom? It's tough to bottom pick these things, but that's the way the action has been on the Internet stocks, that said, for the last three years. There have been five market corrections in dot com world. They have all been of the magnitude of 25% to 40%, and they have all made new highs after they bottomed out. I'm a buyer; I say you buy them. I think they are overdone. What happens is we get hysterical. When we buy these things we get hysterical and when we sell them we get manic. It's just the way they overreact. If valuations are to come into question, then people are going to start to focus on the spectre of a higher interest rate environment and think they need to change the fair market multiples for stocks. Then what happens is you have to sell stocks. We have been chugging along very nicely for the last couple of years on a very low interest rate, high employment, strong economy, but very low interest rates and very low signs of inflation. If that universe is going to get rocked, well then people change their models and their valuations for equities, and that's what's been overhanging the market for the last four to six weeks.