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Technology Stocks : Intel Corporation (INTC)
INTC 35.10+2.3%3:59 PM EST

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To: Road Walker who wrote (130111)3/16/2001 11:37:16 AM
From: fingolfen  Read Replies (1) of 186894
 
Still worried about inflation? Maybe we should worry about deflation...

It's amazing how quickly the numbers turn around. A couple of months ago everyone was worried about stagflation, now they're worried about deflation. Actually, if you read between the lines enough this is actually fairly good news. When people were worried about stagflation, the economy had slowed, but prices were still rising. Now, the economy is still slow, but prices are more stable (and may be moving downward). I agree that deflation is absolutely intolerable for equity owners, but it does leave the Federal Reserve free to lower rates as there is no inflationary pressure on the economy. Interest rates are becoming exceptionally attractive for buyers at this point...
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