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Technology Stocks : Apple Inc.
AAPL 272.34-0.6%1:31 PM EST

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To: David Bogdanoff who wrote (55686)8/11/2006 10:20:39 AM
From: HerbVic  Read Replies (3) of 213176
 
I'm no expert. Let's get that out of the way first.

I think the fed is done with interest rate hikes for awhile. Not that it matters. I believe that the fed's struggle to control inflation through interest rate manipulation is almost irrelevant. The current inflation is a product of world economic forces, not excess liquidity within this country. But, the higher rates do support the Dollar in a period when the U.S. government is spending like a drunken sailor.

Stocks are richly valued if there is going to be a recession. The same holds true if we just have slowed growth. Housing market forces, government over spending and a contraction in liquidity combined with signs of a cyclical peak in earnings all conspire to predict a contraction in equities valuations.
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