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Technology Stocks : Nortel Networks (NT)

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To: Dave who wrote (9881)2/19/2001 2:25:47 AM
From: jack bittner  Read Replies (1) of 14638
 
as i understand it neither inventories as an absolute number nor inventories as a percentage of sales have risen much. the latter is the significant number.
your second point does give one pause. regression to the mean does seem always highly operative, and that would require much further falling of the stock market. but this time we have two powerful counter-recessionary forces: we have good room to drop interest rates further and we have huge federal revenue surpluses with which to stimulate the economy.
i did write i thought it would last most of this year. i did not say it would be mild. i think we'll have "blood in the streets" before the markets begin to rise again. that'll mean lots of people will have to capitulate and swear off stocks. but i'm certain our economy will go on to greater heights.
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