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To: SBerglowe who wrote (35620)5/25/2000 11:51:00 AM
From: pater tenebrarum  Respond to of 42523
 
o.k....it IS a bit surprising that the Dow has held up so well. after all it's not as if the Dow components were all of a sudden immune to rate hikes. on the contrary, their combined liabilities have become so large in recent years, that higher rates will surely crimp their performance. not to mention rising input costs....

just check the IBM balance sheet...the debt load on it has exploded since '97. at the same time earnings have barely budged. only eps has gone up due to their buybacks (which are debt financed...an incredible folly).