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Technology Stocks : Hewlett-Packard (HPQ)
HPQ 22.48-1.0%3:59 PM EST

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To: Elwood P. Dowd who wrote (1432)7/22/2002 8:20:03 AM
From: PCSS  Read Replies (2) of 4345
 
Abby Joseph Cohen G-S Alert this am:

Investor risk aversion is now intense, leading to a careful review of assets and liabilities in the equity market outlook. Assets include the strong underlying structure of the US economy; substantial recovery from capital spending and inventory excesses; mild inflation; and sound Fed policy. Liabilities include questions on corporate accounting (already cleaner); wealth effect impact on consumers and corporations (already factored into our economic forecast); weaker dollar (boosts economic growth but raises questions about global flows); momentum strategies (pendulum swings too far in both directions; and unintended consequences of new legislation. We think equities are priced too cheaply.
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