Semi Equipment Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Semi Equipment Analysis

SOXX 344.71

-1.1%

4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Sarmad Y. Hermiz who wrote (28974)	3/1/2006 7:34:09 PM
From: Return to Sender	Read Replies (1) of 95757

I don't buy that argument Sarmad. It's the relationship between short term rates and longer term ones that makes all the difference. Not the absolute level of interest rates at any point on the curve. The fact that long term bond investors are getting less than short term ones means that the money supply is tighter than it has been. Rates are being raised too high. Bond investors are locking in whatever they can get. The only reason this happens is because bond investors have already come to the conclusion that the economy is likely to slow. They think they won't get higher yields in the immediate future. Bond investors could be wrong but the deeper the yield curve inverts the greater the risk of a recession. Even without a recession the stock market could sell off hard. It did in 1998 with a lot less notice from the yield curve. RtS

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next