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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: marginmike who wrote (84792)	10/25/2000 9:19:09 PM
From: slacker711	Read Replies (2) \| Respond to of 152472

Eventially they will have no choice. Besides if Margins are squeezed Earnings will decline IE stock prices will go down. This would be true if the margins of most tech companies were dependent on oil and other commodities. They are not. The other half of the equation is labor costs....I think we will actually see a deceleration in labour costs in the high-tech industry as the dot.coms implode. The real problem, as I see it, will be demand. A slowdown in capital spending by big telecom companies could have a chain reaction down the line in high-tech companies. The huge auctions in Europe (which basically function as a $100B tax....much of it due this year) will also hurt. However, this is precisely the type of slowdown which the FED can combat. Rate cuts would be effective in a situation like this.... Slacker