How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 483.03

+0.5%

Dec 5 9:30 AM EST

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To: limtex who wrote (24987)	6/27/1999 12:05:00 PM
From: Bill Fischofer	Read Replies (2) of 74651

Re: Rate increase My view is that Greenspan knows full well that inflation is contained, but there are wider considerations in play involving Y2K. Greenspan wants rates higher now for two reasons: First, to dampen speculative market enthusiasm (avoiding a Japan-like stock market bubble) and second, to give the Fed a bit more maneuvering room to be able to lower rates this fall should Y2K fears threaten the financial system with another credit crunch. On the flipside, however, I've recently begun to realize that in addition to the widely-expected 4Q99 selloff on Y2K fears there is also the real possibility that we will see a strong 4Q99 rally in US markets. The rationale is that of all the world economies the US is unquestionably the best-prepared for Y2K and any residual glitches that may ensue. To put it bluntly, if you are a global investor where else would you want to park your money during a possibly iffy transition? Don't be surprised to see a rush of non-US money flooding into US markets in 4Q99 for this reason.

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