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 : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: besttrader who wrote (22547)	5/12/2001 4:02:18 PM
From: American Spirit	Respond to of 37746

Forget stagflation. Inflation is very low and will stay low despite energy prices. Why this phenomenon? Because we with our all-powerful dollar get the cheapest goods in the world. We also get cheap labor. And we will now have the lowest interest rates in recent history making mortgages, credit, cars and many other things cheaper. Already you have 0% credit cards for balance transfers, 0% car loans, 0% purchase plans. This is real money. There will be some inflation in produce as a result of energy costs but we have the cheapest top-quality food in the world here and all kinds of ways for people to save. As for energy prices, why keep the AC and lights on? Why drive so much unless you need to? Why not car-pool? At least drive slower and sell the gas guzzlers. These are things everyone is already doing. I think you'll see the Calif energy crisis go the way of the Y2K scare soon. We in California are already cutting back consumption by 20% or more. Therefore, the glass is neither half empty nor half full. It's just not so great and not so bad. And better for some sectors of the economy than others. The boom days however are clearly over except as oil companies cash in the $2.00+ gas prices. But no more inflated salaries and lives of luxury for everyone. Americans will get fiscally conservative though still fairly optimistic. I think we'll have a soft landing here in about 6 months and things will look steady for 2002. As for stagnation, ys for awhile but that's priced in now. Expect the huge rate cuts to have a very stimulating effect in the latter part of the year. What will happen Monday? I have no idea anymore. Could go either way but the market's not going to go in just one direction. Shorts may even be getting set up for a fall now. Afterall I do expect Greenspan to cut by .50% and so do most experts. The doubt about it Friday may have been just a one-day spin spun by sceptics, shorts and those who don't understand what Greenspan's doing now. Propping up the new economy to keep it from falling. And that includes the markets. Don't expect him to disappoint the way he did last time. He wants to avoid that type of sharp sell-off. What I'd short now? Luxury companies, Vegas high-roller palaces, gas guzzlers, etc. Everything else could do up form here. And don't forget with expectations and burn-rates so lowered now expect even slowed-down tech companies to meet or beat estimates going forward. And expect more like this UIS story which I already posted but will again here for those who didn't see it. Signing off, gotta go to work. Unisys sees early signs of business upturn NEW YORK, May 3 (Reuters) - Diversified technological services provider Unisys Corp. (NYSE:UIS - news) sees early signs of a business upturn, and expects substantial earnings growth in the second half of the year, the company's chief financial officer said on Thursday. The CFO, Janet Haugen, also reiterated the company's second-quarter earnings-per-share outlook of one-half of the results from the year-earlier quarter. ``While the economic situation remains cloudy, we're seeing some early signs that maybe there is a trend developing to be more positive,'' Haugen told investors at the Merrill Lynch Hardware Technology Conference in New York City. ``We look for substantial earnings growth as we look to the second half of the year. We see activity levels are improving,'' she added. Blue Bell, Pa.-based Unisys shares were down 19 cents, or 1.5 percent, to $12.15 in midday trading on the Nasdaq exchange.