Amazon.com, Inc. (AMZN) Message Board

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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 231.69

+1.7%

3:59 PM EST

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To: JBL who wrote (91565)	1/20/2000 12:34:00 PM
From: Greater Fool	Read Replies (1) of 164684

One thing that makes Mr. Greenspan's job so hard is that the effect of rate increases on stock market valuations is heavily non linear. If the market were rationally valued, the effect would be linear, but I think it's generally agreed that investors aren't doing discounted cash flow projections to value stocks -- so rate increases don't have much of an effect. What will happen is that Mr. Greenspan will nudge up rates, a bit at a time, and then suddenly investor sentiment will collapse. Like the proverbial straw breaking the camel's back. I'm in utilities now, and I wonder how interest rate or market sentiment sensitive these stocks are.

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