LRCX this one looks good Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : LRCX this one looks good

LRCX 160.49

+1.9%

9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jim Tao who wrote (89)	2/22/1996 8:22:00 PM
From: Carl Smith	of 142

Jim, I'm not sure that your comment about the Dow is realistic. It is estimated that the 30 Dow stocks will earn about $420 this year. If you assume an average PE of 15 then the math would tell you that another 1,000 points on the Dow is within reach. With interest rates falling coupled with low inflation what motivation is there but up. Most large companies like the one I work for have an employee 401K plan with matching funds. My company employ's 180,000 and most have weekly payroll deductions into this plan. The majority also have the stock fund selected. What I'm getting at is the amount of money flowing into mutual funds on a weekly basis is staggering. I believe its on the order of $10b. This money is fueling the stock market. Once interest rates start to increase then these same money managers will start migrating to bonds for the dividend yield. When that happens the market will fall but until then lets enjoy the ride. When Gold when to $420 a couple of weeks ago I was starting to get worried but its now back to $400. Watch the price of gold closely, it will forecast inflation. Right now it is forecasting none in the foreseeable future. However, not everything will continue to go up forever, the Dow must fall sometime and that sometime will be signaled by something.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next