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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Zoltan! who wrote (36898)	6/2/2000 8:15:00 AM
From: GVTucker	Respond to of 77400

Zoltan!, RE: It depends on the company and its management. A company can have the finest management in the world, but if the market already recognizes that and discounts that fact, then the stock can still not perform well. And that happens more often than people on this board like to think.

To: Zoltan! who wrote (36898)	6/2/2000 8:39:00 AM
From: GVTucker	Read Replies (1) \| Respond to of 77400

Zoltan!, RE: The time to buy bonds is not when rates are rising, it is when they start to fall. That is also a time to buy stocks. Actually, the correlation between stock returns and bond returns is lot as clear cut as a lot of people think. Prior to the inflationary times of the mid-late 70's, stocks actually rose as rates rose, and bond prices fell. Stocks and bonds were negatively correlated, not positively, as they have been for the past 20 or so years. The reasoning behind this is that inflation really wasn't a significant factor for the most part in our economy prior to the 70's. Thus, rates normally rose in reaction to a strong economy, not inflation. And strong earnings is correlated with a strong economy. And looking forward, it is quite possible that the correlation may be something that we've never seen before in our economy. As I remarked on another thread, it is entirely possible that tech stocks could be viewed as defensive stocks going forward, in sharp contrast to the view that they were highly cyclical a scant decade ago.