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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: patron_anejo_por_favor who wrote (17792)9/13/2000 12:50:59 AM
From: Perspective  Read Replies (1) of 436258
 
An outstanding post. How do I nominate it for "Post of the Day" ? I almost responded to rrman myself, but you did far better than I ever could have.

I have tremendous problems explaining this to anyone, since they're all sucked into the Bubble, but markets are omnipotent. When prices for a commodity are low, it produces the conditions that cause the inevitable upswing to follow. As long as there is a lag between the market condition and market response, markets are fated to oscillate between conditions of excessive supply and excessive demand. Anyone who has ever taking Linear Control Theory knows that a feedback loop with enough delay rings by nature.

Nowhere is this more evident than in commodities. Credit cycles are borne of the same phenomenon.

This is quite true of the semiconductor market as well, which is why the industry has traditionally held below average PE ratios despite long-term growth trends. Now to demonstrate for us, please welcome MU!

207.61.23.98

BC
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