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Technology Stocks : Texas Instruments - Good buy now or should we wait?
TXN 159.33-1.8%Nov 14 9:30 AM EST

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To: Frank Drumond who wrote (3979)8/8/1998 9:41:00 PM
From: Charlie Smith  Read Replies (2) of 6180
 
Frank:

I would be careful betting against the dollar with real interest rates as high as they are. With inflation (CPI) at less than 2 percent, a 5.5% Fed Funds means a real short rate of 3.5 percent, which is well above the historic mean.

Your comment regarding the crushing burden of high rates in the 80s is right on the mark. Real rates are nearly as high today, though.

Charlie
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