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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 148.32-3.3%Nov 14 9:30 AM EST
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To: Jacob Snyder who wrote (6018)6/25/1998 7:58:00 AM
From: Mason Barge  Read Replies (1) of 10921
 
<<And his prediction of a Fed Funds rate cut in 1998 is pure wishful thinking >>

You're overstating this just a tad. The dialogue has at least moved from "will the Feds raise rates" to "will the Feds lower rates". You are certainly right that the full employment picture would make it difficult for the Fed to lower rates, but not completely impossible, given the dollar's stregth and the possibility of slowing growth in the economy. Things have changed in the last 6 months.

Greenspan is, of course, difficult to pressure. But he will still feel some pressure from the White House due to the situation in Asia -- one could speculate that the gov't will want to drive some buyers out of the US fixed securities market if it really wants to prop up the yen. It's politically less hazardous than buying yen in the market.

At any rate, to the point, if we did get a rate decrease (and I agree it's unlikely) it would be double benefit for semiconductor equipment issues -- the regular benefit to the general equity market, and also the positive effect if would have on Asian countries' currencies and borrowing ability.
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