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Technology Stocks : Intel Corporation (INTC)
INTC 33.62-4.2%Nov 20 3:59 PM EST

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To: derek cao who wrote (41342)12/3/1997 6:04:00 PM
From: Charles Skeen  Read Replies (2) of 186894
 
===OFF-TOPIC=== Re: <<it is almost impossible for long bond drop below 6%.>>

Nonsense!

1. Ever hear of an inverted yield curve? (Long-term rates below short-term rates.) In the good old days (i.e., the 1960's, the 1970's, the 1980's), an inverted yield curve was the norm about one third of the time. It usually occurred at the peak of a business cycle, as business demanded more money than the Fed would create.

2. Even if the Fed does not drop the Fed Funds rate, the market might, if there is a further flight to quality (i.e., short-term US Treasuries) from Asian and other markets.

Buy bonds!

Charlie.
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