Pat Fitzgibbons Chats on AOL, Nov. 13, 2000

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Pat Fitzgibbons chatted on AOL MarketTalk Monday, Nov. 13 at 3:30 p.m. EST.

SageMoola:

Good afternoon and welcome to MarketTalk, Pat!

PFitzgibbo:

Hi everyone. Pretty wild market today. Hope we can make some sense out of it!

Question:

Given the extreme recent volatility in technology, do you think the market knows how to properly evaluate the potential earnings of this kind of stock?

PFitzgibbo:

I'm not really sure that it does, honestly. I think that last year's wild run-up has made people think less like investors and more like traders. For the most part, that's a pretty dangerous thing. The market has its ebbs and flows, and right now it's in a bit of a downturn. How long that lasts is anyone's guess, but the results of the election will have something to do with it.

Question:

Do you think the Fed will ease rates when it meets this week?

PFitzgibbo:

I can't say for sure, but there doesn't seem like there's any evidence that will happen this week. I don't think the Fed will act in such a volatile time, honestly. The Fed governors are a pretty politically savvy bunch.

Question:

Why

is the market going so low and when

are we going to see some stability?

PFitzgibbo:

The market is lower because of the hangover from some bad earnings, the problem with the election and some real fears about the future. If one or any of those get resolved, then we could be set up for a modest bounce.

Question:

If I don't need the money for the next ten years, is this a good time to put some more money into the market?

PFitzgibbo:

I think that there are a bunch of instruments you can use for long-term investing. Despite the recent falloff, the stock market is still a pretty good place to be. This may also be a pretty good time to get on some names that have been depressed in recent months.

Question:

Do you think the health care sector will have another good year in 2001?

PFitzgibbo:

The health care sector is going to be pretty dependent on who is elected. If Gore is elected, and increases the amount of regulations, it could have a negative impact on those stocks.

Question:

You know, if you look at some of the issues considered volatile, they are still up for the past 12 months, i.e. QCOM, CSCO, JDSU, etc.

PFitzgibbo:

Yes, they may well be up on the year. However, in this period of tumult, I'd tread very carefully here.

Question:

What

effect do you think this election uncertainty is going to have on the markets while it lasts?

PFitzgibbo:

I think that until this gets resolved, we are in for a few tough sessions. The market doesn't usually like uncertainty of any kind and that's being proven here.

Question:

Do u feel that the current state of the market is caused by overbearing by the news media (being very negative, primarily

CNBC

) and the practice by most analysts to be in vogue (everyone is downgrading, and it's like a fad)?

PFitzgibbo:

I think it's too easy to blame the media, and I think that all the media has done is shine more light on markets that had been historically undercovered and underreported.

CNBC

is an amazing phenomenon. The morning show there has become this decade's version of the "Today Show," and I think that they have built a pretty amazing brand.

As far as the analysts go, they will do about what the investment bankers instruct them to do. So everything should be taken with a pretty big grain of salt.

Question:

Should I sell stock now or wait till after election results?

PFitzgibbo:

You need to decide what is best for you and what you hope to get out of your investments. The end of the election is not a guarantee that things will get better. Indeed, stocks could go down after this is all settled. I, personally, don't think that will be the case, but that's my thought.

Question:

Is this a bottom for Nasdaq? What do you think? Thank you.

PFitzgibbo:

I don't think you can call something a bottom until you're pretty far down the road. Those "smart" folks that like to call bottoms here and there are often being more hopeful than reasonable, I've found.

Question:

What are your thoughts on the news that

OPEC

is going to hold oil production steady until January of the New Year?

PFitzgibbo:

That's a pretty important announcement and I think it got lost in all this election hub-bub. That takes us pretty deeply into the winter. I wouldn't be surprised to see the U.S. dip back into the reserves.

SageMoola:

Thank you very much for joining us today, Pat! It's been a pleasure!

PFitzgibbo:

Well, thanks for having me. Maybe by next week we'll know who the next pres. will be. See you on

TheStreet.com

!