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Strategies & Market Trends : Analysis Class for Beginners

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To: Arthur Tang who wrote (632)10/25/1997 11:43:00 AM
From: Arthur Tang  Read Replies (1) of 1471
 
Why Wall street is a story a day? Most of the time, the story is beyond belief. If you work in the industry away from Wall street, you never understand why analysts can change their minds daily. The latest thinking on "Wall street week" is deflation (product pricing lowered) is bad for the stocks. People who are technicians (chartists) should learn more about business management to know that when transistors were $15 each Fairchild only sold 20 million units to NASA. But now that transistors are much less than 1 penny each; trillions and trillions and trillions of transistors are sold each year. Every one in the business knows the price and quantity curves. And they are not "bell" curves, ever. Semiconductor industry was $100 million industry until deflation comes to transistors. Now, they are $100 billion industry and still growing.

How about food industry? When price lowered on foods, the supermarkets make record money. Profit margins went from 1-2% to record 3% (Safeway & Vons) now. And famine has not even been wiped out yet.

Raw material such as silver got replaced when price went to $18/oz. Copper got replaced when it went to $1.5/lb. Gold never got a chance. Jewelry store needs 600% profit to make a living and they are folding up faster than they could sell at 75% discount.

Wall street analysts learn about management, get this country on the right course. No room for foolishness to stay the value of our investments.
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