Cisco Systems, Inc. (CSCO) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cisco Systems, Inc. (CSCO)

CSCO 76.94

+1.1%

Nov 28 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Zoltan! who wrote (36898)	6/2/2000 8:39:00 AM
From: GVTucker	Read Replies (1) of 77400

Zoltan!, RE: The time to buy bonds is not when rates are rising, it is when they start to fall. That is also a time to buy stocks. Actually, the correlation between stock returns and bond returns is lot as clear cut as a lot of people think. Prior to the inflationary times of the mid-late 70's, stocks actually rose as rates rose, and bond prices fell. Stocks and bonds were negatively correlated, not positively, as they have been for the past 20 or so years. The reasoning behind this is that inflation really wasn't a significant factor for the most part in our economy prior to the 70's. Thus, rates normally rose in reaction to a strong economy, not inflation. And strong earnings is correlated with a strong economy. And looking forward, it is quite possible that the correlation may be something that we've never seen before in our economy. As I remarked on another thread, it is entirely possible that tech stocks could be viewed as defensive stocks going forward, in sharp contrast to the view that they were highly cyclical a scant decade ago.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next