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CB, >>I am far from an economist, but if interest rates are inching up, maybe it makes sense?<< Cobie, my knowledge of economics is certainly less than yours, and I hate flaunting my ignorance, but can you or someone else explain the following quote: "Lower interest rates bode well for metal demand because of its use in capital goods--should help the stock prices too. (Motley Fool, Evening News Nov. 22, 1995). I have been trading the steel stocks for four years and am still totally unable to explain their sudden rises, including the one last year (which I sold) peaking in the spring. It seems to me that much of the gyrations in the basic material stocks has to do with the prior movement of big money and the subsequent declaration of "we've seen the worst, we've reached the bottom", a declaration one periodically hears relating to the chip sector as well. |
