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Technology Stocks : Xilinx (XLNX)
XLNX 194.920.0%Feb 14 4:00 PM EST

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To: Lucinos who wrote (2320)5/3/1999 1:28:00 PM
From: Charlie Smith  Read Replies (1) of 3291
 
Lucinos:

I know what inflation is. Low inflation (CPI or GDP deflator) correlates with higher P/E ratios. There is an immutable inverse relationship there. Short term money flows and changes in supply and demand cannot ever overcome the long term fundamentals of inflation rates and earnings growth rates. No matter how much money baby boomers are socking away at a given time, if inflation is rising, stock prices will fall, all else equal.

Charlie
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