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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: TIGGY who wrote (15797)5/1/1998 1:38:00 PM
From: crc  Read Replies (1) of 31646
 

<<Edward Yardeni, chief economist at Deutsche Morgan Grenfell, who continues to speak out on the year 2000 problem, said bond yields could decline to 5% in 1998, 4% in 1999, and 3% in 2000. 'You might as well buy zero coupon bonds, cause they'll be that anyway,' Yardeni said.>>

While I accept Yardeni's forecast that a worldwide recession is quite possible, if not probable, due to Y2K, I am not convinced zero coupon treasuries are the place to invest.

I am increasingly coming to the conclusion that Y2K will cause us to experience bottlenecks or "supply shocks" throughout the economy. Just because we have a recession doesn't mean we will have prevailing deflation. I am looking for an increase in prices in "neccessities" and for a decrease in prices in "luxury goods" post 1/1/2000.
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