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Biotech / Medical : Biotech Valuation
CRSP 50.73-2.8%3:19 PM EST

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To: Londo who wrote (6893)8/13/2002 12:22:10 PM
From: Ian@SI  Read Replies (3) of 52153
 
[ot] economy stuff...

And if this does work - we see large magnitudes of inflationary growth. Take your pick.


With capacity utilization near a multi-decade low at about 76%, the odds of inflation are substantially reduced. Any company attempting to raise prices will simply lose market share.

Similarly until capacity utilization gets back to the mid or upper 80s, lowering rates will have only a marginal affect on stimulating CapEx growth. Supporting innovation could cause some companies to junk old capacity and replace it with new, improved capacity. But lower rates alone aren't enough.

Government policies which stimulate consumer demand will help. e.g. - getting the long term rates down could stimulate housing growth.
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