MDA - Market Direction Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis

SPY 679.70

+0.7%

Nov 26 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Les H who wrote (15215)	5/27/1999 11:43:00 PM
From: j g cordes	Read Replies (1) of 99985

Les, since computer prices follow a 'law' of continuously lower prices for more processing power, what does it mean in real life trading terms to say that "The excess production will be kept going by the Asian Tigers"? Do you mean that stocks are expensive or cheap, that one should buy Micron or sell Motorola? Your "excess" production statement would imply they're stockpiling chips somewhere or that downward pressures in pricing are ruining markets or stock price potential in some way. The computer industry depends on the excess you speak of in order to move ahead. Without it things would stagnate. Its the lower price of todays model, compared to the model two years ago or even six months ago, that creates the driving demand of performance obsolesense. If capacity both in function, performance, and production didn't leapfrog ahead the computer industry would turn into predictable mush with very little product turnover. Its the excess itself that reinvents demand and keeps the industry on a high growth curve. A slightly different view.. Jim

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next