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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: edamo who wrote (140782)	8/27/1999 4:49:00 PM
From: jhg_in_kc	Read Replies (1) \| Respond to of 176387

Is Greenspan explicitly setting out to control (reduce)stock prices? IF HE THINKS A BULL MARKET IS A THREAT, HE CAN CAUSE A CRASH!!!READ THIS. THE MAN IS DANGEROUS. Greenspan: Must Watch Stock Prices By Knut Engelmann JACKSON HOLE, Wyo. (Reuters) - Federal Reserve Chairman Alan Greenspan said Friday central banks must weigh the prices of stocks and other assets when setting interest rates, signaling a growing focus on the equities market. However, Greenspan avoided saying if he thought high-flying U.S. stock prices were overvalued. In prepared remarks to a gathering of top world central bankers in this remote Rocky Mountains resort, Greenspan said policymakers could no longer afford to simply look at ''the flow of goods and services'' when they decide interest rates. ''As the value of assets and liabilities have risen relative to income, we have been confronted with the potential for our economies to exhibit larger and perhaps more abrupt responses to changes in factors affecting the balance sheets of households and businesses,'' he said. ''Central bankers, in particular, are going to have to be able to ascertain how changes in the balance sheets of economic actors influence real economic activity and, hence, affect appropriate macroeconomic policies,'' Greenspan added. Even though Greenspan shied away from commenting on the current level of stock prices, financial markets perceived him to be sending a signal of his concern. U.S. stocks, bonds and the dollar all headed lower. The Dow Jones industrial average closed down 108 points at 11,090 and the Nasdaq index finished the day off nearly 16 points at 2,759. The powerful central banker has long been known to worry about U.S. stock prices, which are trading near record-highs. But Greenspan in recent months has been reticent -- at least in public -- about making judgements on stock prices, saying it was hard to tell if they represented a bubble. Stock prices can play an important role in the economy's performance because of the ''wealth effect'' -- the idea that consumers spend more on cars and other big-ticket items when the value of their stock portfolios goes up. Some economists have noted that with more and more American households owning stocks, the wealth effect's importance in the economic outlook has grown, suggesting that Fed officials must pay more attention to it. ''We no longer have the luxury to look primarily to the flow of goods and services, as conventionally estimated, when evaluating the macroeconomic environment in which monetary policy must function,'' Greenspan said. ''There are important -- but extremely difficult -- questions surrounding the behavior of asset prices and the implications of this behavior for the decisions of households and businesses.'' The comments suggest a shift from remarks Greenspan made as recently as June 17. In testimony to Congress then, he said, ''monetary policy is best primarily focused on stability of the general level of prices of goods and services as the most credible means to achieve sustainable economic growth.'' He also said then that trying to gauge whether stock prices represented a bubble was ''precarious at best'' because it involved second-guessing the views of private investors. In Friday's speech, Greenspan cited the example of last year's seizing up of world financial markets in response to Asia's financial crisis as one example of how asset prices and the expectations of the future built into them could have real effects on economies. ''That episode of investor fright has largely dissipated. But left unanswered is the question of why such episodes erupt in the first place,'' he said. The meeting of top central bankers, finance officials and analysts, held in the serene seclusion of a National Park resort, is titled ''New Challenges for Monetary Policy''. The annual gathering is organized by the Kansas City Fed bank. Earlier Stories

To: edamo who wrote (140782)	8/27/1999 5:06:00 PM
From: JRI	Read Replies (3) \| Respond to of 176387

Re: Greenspan....Today is just noise. Rates are going lower (by the end of the year)...Economy will slower some...coupled with flight-to-safety (Y2K) Tech companies (like Dell) that have flat-out stated that Y2K is going to have a minimal effect, will rally/hold their own vs. other company (if you like, another Y2K premium) * Rollins/Dell said they saw no problem with Dell growing at 45% (and even +) while Dell went from 10% share to 25% share...let's be conservative, and say he meant EPS (and not revenue or earnings)...that is a pretty bullish indication indeed, and should help Dell achieve 30-50% p.a growth (stock price)...if we accurately peg (the 10 to 25% comment), one could allude that Dell could grow at (around 45%) for the next 3-4 years.... * Microsoft 2000, Merced (mid-2000), Dell "catching up" on consumer PC pricing, ISP strategy, and even styling (Webster) * Compaq still floundering.... It is hard not to be bullish over the next year, year and half....I think 30-50% p.a. appreciation from today's closing price is not unreasonable...pretty darn good return.