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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: Yaacov who wrote (39408)11/7/1997 5:37:00 PM
From: greenspirit  Read Replies (1) of 186894
 
Hi Yaacov, here's my take on the market and why it's going down.

1. The Asian banks who have been liquidating assets to pay off bad loans are going to be tightfisted about lending money in the future. Hence a consumer slowdown in the asia pacific region.

2. Since much of the worlds business growth is occuring from that region, traders and investors are fearful. So the market has been correcting.

3. After an initial surge in bond rates, due to those same banks and intitutions looking for a safe haven. The fed will have to open the U.S. coffers and provide more liquidation to the economy. So some feel this will ignite inflation come the middle of next year. Therefore alot of uncertainty...

My thoughts are, these people have not read all the books and articles written about Alan Greenspan. He will sacrifice a slowdown in the world economy before he will allow the inflation genie to get out of the bottle.

So then the question remains, how much will the banking failures effect consumer and business purchasing power in the Asian economies? I believe it will have some effect, but it will be short lived, and not extremely deep. Maybe 6 months.

Most of all, I don't believe it will have a significant effect on business purshases of new computers/laptops/Servers.

So Intel looks like a real bargain here.

Michael
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