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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: fp_scientist who wrote (14969)	10/18/2000 10:14:39 PM
From: quasar_1	Respond to of 275872

The Free Ride... Everyone is selling because stock prices are falling. They buy when stock prices rise. Rationalizations come after the fact to explain the mass in motion. Price action is far more connected to he(a)rd mentality than hard reality. If oil prices stay high they will slow growth in and of themselves and sow the seeds of their own undoing. Oil prices are high because world economic growth is high. This does not point to a recession...yet. The Fed will do nothing. They are overjoyed at the dot.com debacle. This is exactly what they were trying to engineer, protests from the BOG notwithstanding. They thought the market was 'too high', driving excess consumer confidence/spending which fueled unsustainable growth. The world is intrinsically deflating not inflating. Nobody is saying this. This is why there is a margin squeeze going on. Companies can not pass on rising costs for fear of losing market share. This is due to the highest level of global competition we have ever seen in our lifetimes. The stock market perceives this deflation at the margin. This is where the profit fear is coming from, not from falling unit growth, from margin pressure. The economy is cooking. Retail sales are still robust. But nobody will pay one cent more than they have to for anything. Naz 5,000 was a bubble. It was stocks priced for tremendous growth with the expectation of expanding margins. Now all of that has come into question. When all is said and done there will be further consolidation as only the most efficient producers are left standing. In some ways, a focused company like AMD is in a better position than Intel. Intel sits on fat margins in a non competitive position. The 'free ride' is over... quasar