LiveWorld Transcripts

OnMoney.com presents

Martin Mayer, Jeffrey Rothfeder, and others
OnMoney Stock Market Roundtable

May 24, 2000

Financial and stock market experts discuss the state of the stock market today, the best investments and the rise and fall of internet stocks.

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OnMoney: Welcome all chatters! You've found your way to the OnMoney Stock Market Roundtable, where we'll help you figure out what's behind today's financial news headlines. Is inflation back? Will Alan Greenspan have to kill this bull market to slow down the wealth effect? Does the bursting of the Internet bubble create bargains to buy or should you just avoid the sector altogether? How can you make money safely in a market that's moving like a roller coaster? We've assembled an all-star team of financial gurus to answer your questions about what's up on Wall Street. Martin Mayer has written 30 books on finance and knows the ins and outs of Fed policy like few men alive. Martin can answer any question about the global marketplace, macroeconomics, and the digitalization of Wall Street - the rise of the ECNs, the privatization of the exchanges, and the impact all this has on the individual investor. Jeffrey Rothfeder built Bloomberg News into the premiere provider of financial news in the country. Jeffrey follows market movements and investors' herd instincts with an eagle eye that can help you separate the hot trends from the hype. Ask Jeffrey about recent news events that impact the markets and he'll help you see the hidden significance behind the headlines. Gene Walden is the author of The 100 Best Stocks to Own in America, The 100 Best Mutual Funds to Own in America, and 100 Ways to Beat the Market. Gene has appeared on hundreds of radio and TV shows. Gene will give you tips on the best blue-chips, tech stocks and Internet stocks to buy now, and which ones to avoid. Gene also loves to analyze specific holdings from your portfolio. So if you can't decide whether to hold 'em, fold 'em or just walk away, ask Gene to help. Bob Koppel has been a trader on the floor of the Chicago Mercantile Exchange for more than 15 years. An authority on the psychology of trading, Bob has written many highly praised, widely respected books, including The Tao of Trading, The Inner Game of Trading, The Intuitive Trader, Money Talks, and Bulls, Bears and Millionaires. Ask Bob what the professional bond traders, the hedge fund managers and the arbitrageurs think about current market trends. Bob can help you plan a trading strategy that works for you, whether you're a buy and hold type or a day-trading gunslinger. Now we're going to give each one of our special guests a minute or two to tell you what they think is the most important thing you need to know about today's markets. Then we'll open the floor to any and all questions.

Martin Mayer: The value of a share of stock is its piece of the future earnings of the company. It doesn't matter whether the company has earnings now or doesn't have earnings now--the price of the stock should reflect future earnings. Eventually, climbing out of bear markets or cascading down from bull markets, stock prices adjust to the participants' expectations of future earnings.

Jeffrey Rothfeder: I'm Jeffrey Rothfeder and I will be moderating OnMoney's first online Stock Market Roundtable. We've brought together some of the top U.S. financial and markets experts to discuss what has become one of the most compelling stories of all of our lifetimes - if not the one with the most personal impact for many of us--Does this bull have legs?

Bob Koppel: As a former professional market maker and floor trader, I learned a long time ago that attaining profitability is not simply a mechanical endeavor but a creative, intuitive process. In an interview with Jack Schwager in The New Market Wizards (Harper, 1992), Monroe Trout, a billion dollar hedge-fund manager states that he could give his exact trading system to ten traders and some of them still wouldn't make money.

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