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.

Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: JRI who wrote (2289)	3/8/2001 10:52:27 AM
From: Paul Shread	Respond to of 52237

So far, the only thing this has told me is that all the New Economy idiots who claimed tech and Net stocks would be untouched in an economic downturn were out of their minds, something we all knew at the time anyway. Flight to safety is heavy buying in consumer staples; heavy buying in deep cyclicals is an early-stage recovery sign. Assuming it continues, a recovery could be 6-9 months out. I disagree that dot-com is to big tech as big tech is to Dow; big tech is dependent on both dot-com and the blue chips, and as such is in the middle. There's no doubt that blue chips have been cutting IT spending. Not sure what effect tech has on blue chips, unless the consumer spending gains of the last few years were based mainly on wealth created in the Nasdaq. Not to take up the Fed's case here, but consumer spending is holding pretty steadily ... so far. Banks will definitely benefit from lower rates; high short-term interest rates and an inverted yield curve are profit-killers for them. I think the relationship is inverse there too -- the squeeze in the corporate debt market shut down telecom service provider investment in new equipment. Not wedded to all the above views, just playing devil's advocate too.