It's clear that AG is trying to talk the markets down in order to slow down demand. he is still of the old school that if demand stays high, inflation will soon follow. He has recently recognized "productivity" is to blame for the failure of this formula to work. But, bottom line is that all America is now in the market. It will take a major seveal thousand point decline to slow demand. People feel good and that is what AG is trying to effect through "monetary policy". It's bad policy. It's not his job. Other than that, the Fed has done a remarkably good job of handling the few crises that we have encountered during the 90s. AG is not a great FED. He just happened to be in the right place at the right time to be the head of the FED when the economy just won't quit.
Anyway, you're right about certain stocks. How can you not own Intel (demand so high, shortages have developed, DELL (gaining market share and selling PCs probably as quick as they can build them--and not just those low-priced units), MSFT (which will soon attack all other internet businesses--MSFT has been dealing softly because of the "anti-trust suit), CSCO, LU, QCOM.... The list goes on. I have been buying 2001 leaps (little by little). I just hope that this 10% correction in the NAZ doesn't become a 20%-40%. Last year, this time, was no fun. Yes, I know, circumstances are different. We'll see. |
