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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: sandeep who wrote (36720)	2/14/2001 2:24:30 AM
From: IQBAL LATIF	Respond to of 50167

Bloodbath in SOX came after the news were digested that as AG sees no recessionary threats we would see no deeeper cuts, I would have thought that corporate profits would flourish with a resurgent economy, the pivotal point is the GDP growth, if that is not impacted the market should reward the stocks but we are part of the herd right now market thinks that it is the cuts that will help the stocks.. The cause of the present trend of the tech sector is the assumption that we will see slow down of growth for next two quarters, the answer is 'to see deeper cuts' but if at the first place we do not even have that big a slow down that may require deeper cuts, the markets should have rejoiced, however when the cause and effects lines are blurred, we the long term FA guys need to sieve through the facts and get it right, in my opinion this is not a sustainable logic, it will not sustain the test of times and we will see that risk premiums associated with huige slowdown woudl need to written off, that is a fact that only good numbers would add. The way it looks I will not be surprised if strong numbers may actually cause the market to depress further but strong numbers have produced phenomenol profits, the bear markets cannot afford non-inflationary economic growth numbers.. I think that we will continue to see 1/4 points cuts and good econoic data that should help us..