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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: johnd who wrote (28999)	9/2/1999 1:18:00 AM
From: ed	Respond to of 74651

Well, you probably read a lot of articles about economics , but you need to think deeply about what it means. Inflation is a relative idea, and sometimes is not a bad thing at all. Think about this, if your company can't raise price to improve profit margin , then how can you get a raise every year ? Then how can your family improve their living standard ?As long as the inflation rate is slower than the raise of your salary, then inflation is really not a bad thing. So, it is productivity which plays the game. If less people generate more revenue and profit, then your % of salary raise will be higher than the % of price hike of your company's products. On the contrary, deflation is the big killer of economy and living standard. Just look around the world, countries with higher living standard, the price is always higher than countries with lower living standard. Deflation will reduce the profit of companies, as a result , the cut of your salary and maybe mess layoff to cut cost. You know what will happen for a working family loses the income of a major family member. As to the Yen goes up against the dollar, well, that is not necessary a bad thing. It will make the US products much cheaper comparing to the Japanese products, and will also improve corp America 's profit margin on products exported to Japan due to the exchange rate. It will make the US property much cheaper , including the stock market, and attract new money to the US market from oversea.