bubble

[Rakesh Bhandari]

>Rakesh Bhandari wrote:
>>Aren't
>>they the ones getting hit hard by Greenspan's rate hikes that hurt Old
>>Economy companies?
>I don't get this. Why should rate hikes hurt Procter & Gamble? The
>entities most vulnerable to rate hikes are preposterously valued
>stocks of profitless companies. And without the endless stream of IPO
>cash, where will most of these net firms be?
>Doug

Just noting here that dependence of New Economy companies on venture
capital has been claimed to make them relatively immune to Greenspan's rate
hikes which may not indeed hurt P&G and the like. Higher oil prices seem
likely candidate here.  I don't think it was IPO cash that powered the
NASDAQ from 4,000 to 5,000; rather it seems to have been led by big gains
by Intel, Microsoft, CISCO, and perhaps some biotech companies. There was a
report in the WSJ I think Friday on this.

yrs, rakesh