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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (2597)	6/11/1999 10:00:00 PM
From: Ausdauer	Read Replies (2) \| Respond to of 54805

Lindy, You did all of that in just one word! Congrats! Uncle Frank, I didn't mean it that way. It always seems that you have a response in the wings ready to be launched like a guided missle. I thought you may have a distilled down reply to the spectre of rising interest rates that befalls us now. I did not mean to be restrictive about the 200 word limit, just wanted to try to keep things plain and simple. My question has to do with the way Moore presents the risk/reward scenario. As interest rates rise the floor of the CAP curve (as it relates to the total surface area) begins to shrink as the reward for less riskier investments goes up. At some point this is reflected in the market cap of the Gorilla. My question is, would increasing interest rates be felt market wide, or would smaller, more nimble players with a clean balance sheet be able to dodge the perils of rising interest rates? Companies with large cash positions also have the advantage of higher rates of return on short term investments which may have a significant impact on earnings, although artificially so. Basically, do people begin to whittle down positions in Gorilla investments in an atmosphere of rising interest rates or is that considered "market timing". How predictably does the area under a large CAP evaporate when interest rates rise? That is what I wanted to know. Aus (the guy who needs 23,765 words to make one simple point)