Texas Instruments - Good buy now or should we wait? Message Board

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Technology Stocks : Texas Instruments - Good buy now or should we wait?

TXN 156.86

-1.6%

1:08 PM EST

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To: johnny boy who wrote (3974)	8/8/1998 11:54:00 AM
From: Frank Drumond	Read Replies (1) of 6180

I know I'm a bit behind in responding to the '87 comparisons but there are a couple of significant differences. 1) In 87 interest rates were just starting to re-enter the single digit realm. Many companies were saddled with exceptionally high interest rates on their corporate debt. I recall buying a house in the early 80's and paying 4 points to get a 2 year note at 16%. Today the same loan would cost at most 1 point a I can get 30 years for 6%. At any rate corporate debt was a killer in the mid-80's 2) Employment levels are much higher now than at the start of the recession in the 80's. I own a small hi-tech firm and it is tough to find good talent at a reasonable price. Now this also impacts how much growth is available to companies, but it also means that employment should still remain relatively high. On the downside there are definitely global economic problems and it is hard to predict how they'll play out. My gut tells me that although this will put pressure on companies for the next few quarters, if handled correctly they should be enjoy a good reward when Asia turns on again. In a related subject, when is a good time to start buying some foreign currency options?? Around 86 the dollar was also at a historical high, almost where it is now, and I hesitated buying options on some foreign currencies. Would have made a boat load of cash if I'd gone ahead and placed the bet that the $ must come down.

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