WHAT IS IT WITH THE INTERNET STOCKS?
– While the S&P results above reflect the importance of high tech stocks, they don’t include any Internet stocks (AOL joined the S&P just this month). Despite posting losses in many cases, these “darlings” of the market continue to grow in stock value (Amazon.com, Broadcast.com, etc.) The much “bally-hooed” Internet discount trader, E-Trade, lost $13 million last quarter and its stock rose 30%. Investors seem to be betting that the Net is the future, but sooner or later, it seems that these stock values will need to reflect some relation between earnings and value. P&C LOSSES – Major storms in 1998 (including Hurricane George) ran catastrophic losses just over $10 billion for the year…third worst year in history. FYI, 1992 saw losses of $22.9 billion (mainly from Hurricane Andrew) and 1994 had $17 billion (mostly due to the California earthquake). INTERNET ACTIVITY – Broker World’s January issue contains its annual Chief Executive Forum. Virtually all of the industry leaders speak of
