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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 159.13-4.4%Nov 11 3:59 PM EST

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To: Gottfried who wrote (10464)7/18/2002 11:16:04 AM
From: chomolungma   of 10921
 
Low interest rates should have led to higher stock prices, I agree. Many utilities are being questioned by the SEC now. I think that has helped bring the whole group down. It's probably not the whole explanation.

The utility index used to be a good proxy on interest rates because utilities were stable, had high dividends and lots of debt to build massive plants. The companies fortunes were tied to interest rates and the securities behaved like fixed-income securities. Today the definition of a utility has changed and the characteristics also. Many companies in the utility average are just as risky as other companies and don't behave like bonds.
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