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Technology Stocks : Intel Corporation (INTC)
INTC 39.38+6.7%Jan 2 9:30 AM EST
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To: Charles Skeen who wrote (37824)10/27/1997 10:06:00 PM
From: Tunica Albuginea   of 186894
 
Charlie,
Re' "Re " Is deflation bad "?
"I don't need to be lectured by the Wall Street Journal that deflation is good for me ......the prices of Intel chips are coming down far faster than planned; thus earnings will not meet expectations next year; thus, short-term, Intel's stock price goes nowhere but to the next support level, 70 perhaps.".

You obviously have missed the whole subject of econ 101, Re; selling cheaper products to make up on volume.Thus I will take the libertyof refreshing your memory: It wasn't until Henry Ford started making cheap cars for the masses that Ford Motor company started becoming big.Till then only very few very rich people could afford the Mercedes and Bugattis.
Same here. A small amount of the world's population now uses computers.As the chips cheapen, gg, more will be sold.

TA
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