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Technology Stocks : Semi Equipment Analysis
SOXX 299.81+2.7%Dec 19 4:00 PM EST

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To: Czechsinthemail who wrote (265)1/17/2001 8:57:19 PM
From: Dale Knipschield  Read Replies (1) of 95617
 
Baird,

I pretty much concur with your view that:

>Though many make analogies to 1998, one difference I see is that this time the Fed is perceived as having been much more aggressive in raising rates and much slower in deciding to lower them. The surprisingly rapid and profound economic slowing, which elicited the unprecedented 50 pt interim rate cut, may not have been fully discounted in terms of its severity or its duration.<

I think a rapid recovery could be affected, except for the great unknown surrounding the price of oil. If the announced production cuts become reality, we can look for higher prices again, along with an unknown, but certainly negative impact on the overall economy. The new administration has its work cut out to re-establish this economy on firm ground.

Regards,

Knip
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