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Technology Stocks : Semi Equipment-Sell when they're singing in the streets -- Ignore unavailable to you. Want to Upgrade?

To: Demosthenes who wrote (115)	5/26/2000 2:07:00 AM
From: Math Junkie	Read Replies (1) \| Respond to of 276

D, I didn't mention those things because they have already been discussed at length by others. I chose to discuss the issues I did because I felt they had either not been mentioned, or had not been sufficiently considered. I think it is important to look at the reasons for the overall market pullback which semi equips are participating in. As I understand it, these are the expectation that the Fed will be successful in reducing economic growth, plus the fact that about half of the time when the Fed has tried this in the past, a recession has resulted. I certainly think that both of these possibilities create downside potential for technology industries to one degree or another. In addition, rising interest rates increase the cost of financing new fab construction. (Not all semiconductor makers are able to pay cash like Intel.) The question is whether the negative macroeconomic factors mentioned above will outweigh the industry-specific positives which you mentioned. Time will tell.