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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (21531)	5/9/2001 8:54:17 AM
From: Electric	Read Replies (2) \| Respond to of 37746

I disagree.. This isnt the 70's, the last time we had real inflation. Cutting rates makes a huge reduction in liklihood of inflation given your scenario..to finance higher energy costs, it now costs LESS to cover the higher costs, so companies DONT have to raise prices as much, or layoff employees as much. Energy costs will not cause inflation like it did in the past. In my view this is just a part of an economic cycle, nothing more..we cant have an eternal growth cycle, there has to be a trough..and we are in or near it..but the market looks outward, looking past the current environment, probably a year or so out. The only way the NAZ retests is if things get as bad as they did from Nov to Feb, but now as a starting point..so we would have to say things are WORSE than the worst case scenarios gave. I dont think we see the lows again. I also feel that today will rebound, the NAZ has been coiling, the market is looking forward and rates keep dropping which lowers finance costs, increases corp spending, and the earnings portion of a PE ratio. A trader BUYS this dip, not CSCO, but the other names.. EXTR, SONS, JNPR, BRCD, VTSS, NVDA.. and they will be rewarded..