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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: marginmike who wrote (48899)5/2/2000 9:54:00 AM
From: Casaubon  Read Replies (1) | Respond to of 99985
 
The only way interest rates effect biotechs is the guaranteed rate of return one gets buying bonds instead of stock. No matter how high the interest rate goes, if you need a drug to alleviate a medical condition, you will buy it. Interest rates don't effect disease statistics. One could argue that higher interest rates will cause a recession which would lead to unemployment, and that would result in more people who do not have health insurance, and therefore could not afford to buy the necessary drugs. However, I find that scenario to be ridiculous. The only way promising biotech companies will fall apart is if they have failures in the clinic or somebody beats them to the punch.

All just my opinion, of course.



To: marginmike who wrote (48899)5/2/2000 10:27:00 AM
From: Madharry  Respond to of 99985
 
I don't think you read what I said. I was referring to increases by the fed which affect short term rates.
And Amazon is not a tech stock it is an online retailer/ dot.com which will of course suffer as increases in short term rates impact on consumer spending