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To: fedhead who wrote (108271)	9/11/2000 2:17:24 PM
From: GST	Respond to of 164684

Anindo: "How do oil prices affect companies like JDSU, JNPR etc?" They (higher oil prices), drain liquidity from the economy and the stock market (financial assets). Highflyers like JDSU need lots of liquidity to sustain their stock prices -- part of this is their rate of growth, which might or might not be hurt, and the second impact occurs by shifting investment preferences to financial assets that are profitable now -- future profits are more heavily discounted late in the business cycle. Oil is the soul brother of higher interest rates. Oil is even more highly correlated with the business cycle than interest rates.