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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Dan3 who wrote (41881)	5/31/2001 4:40:55 PM
From: niceguy767	Read Replies (1) \| Respond to of 275872

Dan3: The most important objective of the fed has to be: 1. Restore a normal yield curve where long rates are higher than short rates, thus encouraging long term investing as opposed to short term. Long rate firmness while short rates decline is in keeping with such an objective and consequently a very positive sign, imo. The recent rate cuts have restored about $2 trillion of the wealth/confidence that vanished in the tech bloodbath over the past year. This additional $2 trillion "confidence factor" is serving to put in place the foundation for recovery which, imo, is probably now underway. As the techs continue recovery, the incremental wealth factor will fuel additional economic expansion and so it goes...Additionally, as expansion unfolds, earnings estimates expand, thus providing rationale for current seemingly high P/E ratios as in the case of INTC (N.B. AMD's P/E is about 1/3 the norm)...If I had to guess, I'd say we're already on the road to recovery as evidenced by the fact that 25% of the S&P 500 stable of stocks have recently achieved a 52 week high... Digression:Techs have a ways to go before 25% of the Nas and Soxx stable of stocks can make such a claim, although given the precipitous declines in many over the past year, probably ensures that about 80% of tech stocks will achieve 52 week highs over the next 12 month period!!!