Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 165.07

-1.0%

Nov 18 3:59 PM EST

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To: Dealer who wrote (62205)	1/14/2000 11:07:00 PM
From: mauser96	Read Replies (2) of 152472

In addition to the reasons listed in the previous post., higher interest rates bring in competition for investment funds (why try for a risky 14% from stocks if you are able to get the same return from risk free bonds?)This particularly appeals to rich folks that control much of the market.Also high interest rates hurt those companies that do need to borrow, setting up a decline that drags down debt free issues also. A real bear market makes almost all stocks sink. Furthermore, high interest rates usually mean higher discount rates, making present value of future growth less. In fact a high tech stock with a long future ahead of it can be considered as a "bond "of sorts and the concept of bond duration could be applied. History shows that raising interest rates take a lot longer to kill a really healthy market like today than they do when a market is already weak, Furthermore, raising interest rates usually has a lesser impact than lowering them. Nevertheless. the Fed has the power to kill this market if they really want to.

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