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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 227.37+0.3%3:59 PM EST
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To: Bill Harmond who wrote (71718)8/4/1999 3:00:00 AM
From: GST  Read Replies (3) of 164684
 
William < not your particular issues!! :) > ????? How do you figure that? Interest rates are very much part of the picture I have painted. And I laid out quite clearly why nets are the most interest-sensitive of all stocks. The article indicates one very important part of the pattern -- higher interest rates resulting from wage costs rising faster than productivity. This is central to my analysis.

The missing (or only implicit) aspect in this article -- as with most of the people who post here -- is the stunning lack of awareness of how serious these issues become when a country is terribly dependent on foreigners for capital. This is a compounding factor. US spending and 'investment' patterns create a trade deficit which makes us reliant on the 'good-will' of foreigners to cough up enough in investment capital to offset the trade deficit -- which is why we are so hyper, hyper sensitive to the changing interest rate environment. If foreigners reallocate on the basis of 'better investment opportunities' as the article states, they are inclined to consider moving their money out of the US to protect themselves from currency risk. This creates a whole other dynamic in its own right. This is our predicament now. Did you really think this was just about some stupid 1/4 point interest rate hike?
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