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Technology Stocks : Ascend Communications (ASND)
ASND 202.23-4.2%Dec 2 3:59 PM EST

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To: WBendus who wrote (7855)8/1/1997 11:57:00 AM
From: Chuzzlewit   of 61433
 
Wayde, while ASND does not derive its profits from interest rates, you miss the point. When interest rates rise the cost of capital increases for all companies which then puts a damper on future purchases, since these must be funded. It is this fear that drives the market down as interest rates rise. To give an extreme example, that is why automobile manufacturers are so sensitive to consumer interest rates.

Regards,

Paul
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