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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 177.78-2.2%Jan 9 9:30 AM EST

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To: CRL who wrote (95547)3/9/2001 6:08:40 PM
From: Keith Feral  Read Replies (1) of 152472
 
Buying the market at fair value is much less risky than the current pyschology would suggest. Do you think that money is going to flow into conservative bond funds and cash funds as interest rates dip below 5%? I don't think so.

Stocks are beginning to look more attractive as an asset class than fixed income now that we have retraced to longer term valuations for stocks. The majority of the people are going to allocate most of their investment savings to stocks.

The direction of stock prices has always moved in correlation to the direction of short term interest rates. Despite the abnormal divergence between short term rates and the market so far this year, the next 50 basis point cut by the FED should shift the market back towards equilibrium in favor of stocks.
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