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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Ausdauer who wrote (2589)6/11/1999 9:25:00 PM
From: gdichaz   of 54805
 
To Ausdauer: Who is to say whether interest rates are going up? There is no fundamental economic reason for that since there are few if any signs of inflation building. But of course, these days what matters is psychology, "preemptive strikes" etc. so it may happen.

You have just had an excellent answer to your first question from Chuzz.

Now just for chuckles, here is a comment from Chaz too re your second question. The relationship between a Fed interest rate hike and a quintessential young gorilla growth stock such as Qualcomm is roughly zero. The overall market will suffer perhaps at least temporarily but the Q will go on its merry way. Its royalty and other income will supply the necessary funds for its growth and CDMA will grow around the world so the market for the Q will be there. Note what happened when the bottom fell out in Korea. CDMA growth went on almost without pause (though there was psychological damage to the Q's short term stock price based on misconceptions). OK so I exaggerate a bit. But suggest this is closer to the truth than that the sky will fall on growth stocks if the Fed raises the short term rates it controls by a quarter of a point.

Chaz too

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