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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Kenneth E. Phillipps who wrote (3130)	7/29/1999 11:41:00 PM
From: Paul Fine	Read Replies (1) \| Respond to of 14638

The market downturn today was due to growing belief that the FOMC will raise rates at the 8/24 meeting, based on the economic reports that came out this morning. IF more reports over the next few weeks support that assumption, then the market will continue to weaken. However, by the time 8/24 rolls around, I believe the rate increase will already be factored into the market, and even a morning sell-off will be followed by a "buy on the fact" rally later in the day/next day. Just as NT withstood the brunt of today's market debacle, I think any sympathetic downturn in NT on 8/24 will be relatively minor and short-lived. Investors will be more selective in the stocks they buy, but they won't leave the equity markets. IMO, most of the people jumping into stocks these days don't have a clue(or interest in learning) about the bond market. I believe NT would still be on the short list of the "safer" tech stocks to own and could even benefit in the longer term if people panic out of the Nasdaq tech stocks. If you are worried about the impact of any action by the FOMC on 8/24 on NT in the short-term, then sell your stock before the split/dividend on 8/20(NYSE). For the same value of stock, you will pay a lower commission by selling fewer shares of a higher priced stock than if you wait to sell twice as many at half the price. Paul