What's wrong with the market?

[The Morleys]

On Thursday 06 June 2002 10:31 pm, Matt Luettgen wrote:
If you want a job, go buy
> something...tell your neighbors to go buy something.
> I'm not talking a $0.99 package of hot dogs I'm
> talking stocks.  The only way to get the stock market
> back on its feet is to show confidence in it, but the
> majority of people are to stupid to realize that life
> will continue...it's not going to change that much, 

The Nasdaq is off 70+% from highs hit two years ago.  It's kinda tough to 
have any confidence in anything now.  Have you seen the earnings reports of 
companies lately?  They are no where near what they were two years ago.  If 
you want to pile your money into the market now be my guest.  I thought 
buying would have been a great idea two months ago.  Since then the Nasdaq is 
down about 12%.  I know the Nasdaq isn't everything, the S&P is getting 
pounded too.  Enron ring a bell?  Shady ccounting practices are being exposed 
everywhere.  The number of reasons not to buy just yet goes on and on.  

> american public, in general, is stupid.  They follow
> the main stream press and believe every word of it.

Can't argue there.

> They pay their taxes, they go to work, and they stick
> to their same schedules.  Outside of a few days after
> the attacks everything is back to normal, 

What is defined as normal?  Our lives now include terrorism.  It will take a 
while before people get used to that as normal.

> accept the
> same depressing stories that are aired 24/7 by those
> damn news companies that or so freakin worried about
> ratings that they don't even realize that they are for
> the most part behind the economic down turn.

WorldCom just announced they could potentially lay off 16,000 people.  My 
company has implemented a 15% cut in IT over the next three years.  That's in 
nominal terms.  In real terms it will be about a 25% slash in budgets. I pray 
I'm not part of that 25%.  This coming from a company that has no money 
worries. No one is sure the down turn is even finished yet.  Companies are 
now saying they expect a turn around in '03.  Six months ago they expected a 
turn around in '02.

Having said that I think companies get too short sighted.  They react 
violently to current conditions and don't keep a long range perspective.  
They went nuts the last 5 years and then all of a sudden pull the rug out 
from everyone.  It will take a while but eventually they will realize that 
cutting costs can sometimes mean cutting quality, especially when you cut 
huge chunks at a time.

timm