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Technology Stocks : Intel Corporation (INTC)
INTC 35.81+0.2%Nov 25 3:59 PM EST

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To: Mary Cluney who wrote (143223)9/10/2001 5:35:20 PM
From: Saturn V  Read Replies (2) of 186894
 
Ref <Gloomy investor psychology >

The fall period, as we all know is the prime period for pessimism in the financial markets. The rapidly shortening daylight hours, the children going off to college, all contribute to a negative outlook. And unfortunately pessimism and panic are infectious, and this can cause things to get out of hand. So the biggest market crashes happen in the fall.

Is the worst over in this market ? I dont know ! The market can magnify the slightest problem to absurd extents, as you noted.

Business investment has come to a standstill. The consumer spending is down a little , but is still OK due in part to lower interest rates and tax cuts. But the rising unemployment can put a damper on that too.

So we can focus on the positives. The PC business and cell telephone business appear to be bottoming. So the worst should be over. Windows XP has both the sizzle and the meat to spark an increase in computer sales. Strategically Intel has never been stronger in computing than today ! The mid-range and X86 market, which Intel has dominated has grown much more than anyone ever thought possible ! Intel is also poised to to have a strong presence in the big iron business with the Itanium. And Intel is making major inroads into handheld computing. Which ever way computing goes, Intel will do fine. Intel's communication venture is an unknown, but has promise once the dotcom bust clears up.

A year from now Intel's traditional growth pattern will have kicked in, and the market pessimism will be history.
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