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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: SJS who wrote (5962)	2/3/2000 9:09:00 AM
From: Lee	Read Replies (1) \| Respond to of 24042

Hi Steve,..Re:.The 10 year bond is rapidly becoming the new benchmark. BTW, most people don't know this, but the 10 year bond is what your mortgage rate is pegged to. It's NOT the 30 year. You're right! Look at the yield curve and the 2 year and the 10 year TIP or inflation indexed. Funny looking yield curve. <g> bloomberg.com Eventually, these rising rates are going to pinch expansion and earnings, and that will keep prices down. Yep! <g> what throws a fly into the ointment is that some of these companies are not going to the debt market for financing, but rather using equity (like the money they get from their rising stock). What about issuing new shares for purposes of expansion or debt payoff? How is that financed? Banks (prime rate adjust) jumped on the fed funds rate increase pretty quickly yesterday. (within seconds <g>) Cheers, Lee

To: SJS who wrote (5962)	2/3/2000 11:27:00 AM
From: t2	Read Replies (2) \| Respond to of 24042

Steve, I was not referring to the rising rates on the 2 and 10 yr notes. My focus was mostly on short covering in the 30 yield bond. As their bets have not worked out, I was assuming that the same types of hedge funds there were short the 30 year bond may have a tendency to be short the high PE stocks (at they won't be long to any significant degree). If forced to cover on the 30 year bond, they would likely have to cover any short trades in the stock market as well. That is the biggest enemy to the short sellers. I realize that there will be a lot of variables in this equation but i am trying to sense what is happening. My conclusion is that the internet stocks along with the stocks like JDSU/QCOM will rise in a big way. There are several factors that move the stocks and the above scenario could also be helping things a little bit going forward. One has to remember that money keeps flowing into the market.