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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?


To: Jerome who wrote (505)11/14/2001 12:41:57 PM
From: michael97123  Read Replies (1) | Respond to of 25522
 
The answer is that there is an undetermined amount of Federal stimulus about to enter the market. Has there been a period of time where interest rates consistently fell and the market did not respond? (except the depression era)"

Stimulus entering the market are the greenspan dollars being printed nightly. They will buoy stocks, no doubt. Will that be enough to turn the economy? Retail sales were up sharply in october led by interest free auto sales. Jacob's argument that this just takes away from future spending. You are right; it was only in the unusual depression era situation that rates fell and the market went down. Well the market is going up but if rates dont improve the economy rapidly enough we will have a valuation problem. I will sit on my hands until the end of the year with jacob. I am hoping the exhuberance spreads and the market goes back to 2900 or so where it was stymied last winter. But i may be gradually selling next year in the 2000's whether the market gets back to 2900 or not. mike

PS one more thing to ponder.. Republican house of reps is becoming obstructionist and this may delay good fiscal and tax policy that is necessary now. The republicans will pay a steep price next november in the house when the dems take over. What planet are Delay and Army from?