Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: cyberman who wrote (17953)	2/7/2001 10:50:46 AM
From: pat mudge	Read Replies (2) \| Respond to of 24042

Since earnings are almost over, I think the market slides lower for a while, mostly because everyone is ALREADY factoring in another rate cut after we just had one, and it just seems like no one is satisfied on the long side of these techs. For instance, if we get another rate cut at the next meeting, do you think that will change sentiment for more than a day? I don't....We just had a rate cut, and the market sold off. This market is NOT looking out 6-12 months, it is being overly defensive because of a possible recession, new adminsration, weak economy, and mostly because most longs got their butts whipped in tech last year - Once bitten, twice shy Were it not for the amount of money in money market funds waiting to be invested, or the possibility of a tax cut and another fed drop, I might agree with you. As it is, I'm not convinced the market is going to tank. Keep in mind we're dealing with a much more knowledgeable market than we were a year or so ago. Information is much more readily available and most investors know why Cisco's numbers are down. Knowing that they can walk through the traces: the Fed's lowering rates, more capital available at better rates, increased carrier spending, Cap-Ex boosted, more sales to networkers, inventories cleared out, and so on. They're also learning (not fully there yet) that to understand what's happening in the build-out of the Internet, you don't look at Cisco, you look at the fiber optics leaders. They are the bellwethers, even if only a relatively small percentage of the market understands it today. If the Nasdaq ends the day flat or up, I will be the first to say, "The king is dead. Long live the king!" Pat