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 337.35

-1.5%

Jan 20 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: robert b furman who wrote (55962)	4/15/2012 3:27:29 PM
From: Return to Sender	1 Recommendation Read Replies (1) of 95743

The stock market will always fear the unknown. I'm not suggesting that we don't invest in it. Not at all. If the FED merely raises rates gently to deal with a rapidly growing economy then you will probably be right. But what if inflation rises rapidly like it did in the 70's? What if it does it while the economy is not showing much, or any, growth at all? Remember Stagflation? en.wikipedia.org In economics, stagflation is a situation in which the inflation rate is high and the economic growth rate slows down and unemployment remains steadily high. It raises a dilemma for economic policy since actions designed to lower inflation or reduce unemployment may actually worsen economic growth. What I am suggesting is that the FED is going to have to raise rates rapidly to deal with run away inflation at some point again in the future. I don't believe our country is in better shape now than we were in the late 60's or 70's. In fact I believe we are in worse shape than any other time than the great depression. Yes, the stock market has done well the last couple of years. Extremely well, but of course the rise is getting longer in the tooth, with fewer and fewer issues carrying the advance. I ask again how long the US deficit can be allowed to rise? Do you feel like your future social security and Medicare benefits are safe in the face of the debt we now have? The government has got to attempt to balance the budget somewhere along the line. That either means higher taxes or fewer benefits for Americans or both. All I am saying is that there is likely to be the kind of stock market investment opportunity that has been seen only every 40 years or so again soon enough. These bottoms occur when the P/E ratio on the S&P 500 are extremely low because hardly anyone wants to be invested in stocks. I could be wrong but I think we will see that kind of opportunity again. Might not be that far off. A P/E ratio on the S&P 500 below 10? Five or six even??? I say why not. RtS

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next