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Strategies & Market Trends : Range Bound & Undervalued Quality Stocks -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (2045)	5/8/2000 3:06:00 PM
From: Esway	Read Replies (1) \| Respond to of 5499

Just came across those on Briefing.com this morning and knew SFP was one you followed closely.

To: JakeStraw who wrote (2045)	5/8/2000 11:35:00 PM
From: BWAC	Read Replies (3) \| Respond to of 5499

I was thinking today, and that usually leads to trouble. About this market, the Fed's agenda, the interest rate thing, etc. 1.) There are a whole lot of extremely undervalued stocks out there. Large, profitable companies trading at PE's of low teens and many under 10. Even worse, many of these same companies are trading at or very near their book value. These type companies being the vast majority of the market hardly point to asset inflation or excess speculation. (Contrary to popular CNBS belief, the dippydoodleshotinthedark.com is not the 'market') 2.) The Fed is crazy. What world are they living in? Raising the rates much further is going to put an extreme hurt on the part of our population that cannot spare even one more dime for a car payment, house, rent, credit card payment, whatever. Folks this is still the vast majority of our population. Do you realize that in 1998, 60% of the people filed form 1040EZ? Stock market gains, not a chance. So what if the average worker got a 4% raise this year. It is long overdue. People got to live and eat. The Fed's current course will serve nothing more than increasing the gap between the haves and have nots. A 9% plus mortgage absolutely kills some peoples dream of the very basics, a home. Small businesses are now paying over 10% for some of their loans which are normally at Prime plus 1. Do you think any of this matters to the top 5% of the taxpayers? Heck no. What does interest mean to these people? Nothing. They'll buy comsumer goods on and on and on. Simply because they can. 3.) These employment numbers have to be useless information. Its not that there is a shortage of able workers. It is that the government and all the handouts has eliminated huge numbers of people from the workforce. They don't care to work. Look around next time you are out. To this, throw in a healthy dose of lack of necessary skills. 4.) The technology, internet, and the online broker have brought affordable trades to the masses. Many middle class can augment their income through the stock market and save for retirement. But oh no, that creates a little disposable income. Can't have that. Its excessive speculation. Asset inflation bubble. Baloney. See #1. How is the Fed going to fight this technology and ease of access? Thats the real problem. It enabled the masses. Hell all this started with $8 trades in a sense. 5.) Interest rates, etc. do not matter to the hype.com traders and other market gambling types. 6.) Since the Fed is hard at work destroying stock market capital gains, where is all the tax money going to come from next year to support all the government handouts? I assure you it is not coming from me. 7.) Inflation does not happen when there is robust competition in the economy. Gas would be an exception, but then again there is no competition there either. There is simply too much competition in most basic retail/consumer goods providers. Look at Home Depot vs. Lowes. Walmart vs. Target or Kmart. The excess number of clothing retailers. The Drug store on every corner. The grocery store competition. The 30 and 40% off signs in the malls. None of these businesses have any pricing power. None. Not a bit. Because their competition will undercut them. Yet all the large players here have pricing power OVER their suppliers because they are the largest outlet for the goods produced. Can't inflate from that. Can you imagine a vendor NOT selling to Walmart because Walmart wouldn't pay an increased price. No way. Don't make me laugh. The Vendor would go back and figure out how to make the product cheaper. OOPS! No inflation again. 8.) It all just doesn't add up. Somebody, quite possibly me, is missing the big picture. 9.) And again it all comes back to the empowerment of the $8 trades. The technology driven by these online brokers and the driving down of commission costs has allowed middle America to actually have enough positive cash flow for some of the finer things in life. We wouldn't even have this problem if commissions were still $300. 10.) So I guess the Fed will increase rates to 10% and make $300 the minimum trading commission. Why not? Its not like they aren't just about that far out of touch right now anyway. Clowns to the left, clowns to the right, clowns all around.