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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (13784)	1/22/2002 8:29:56 PM
From: Maurice Winn	Respond to of 74559

Jay, MSFT and QCOM, for example, have stacks of cash. When interest rates zoom up, that's good for them. Meanwhile, as interest rates are slashed and printing presses run hot, they lose ground rapidly as their interest rate profits fall [but they can buy a lot of distressed assets with their cash, so it's not all bad]. So, I guess you are right, the first moves are down as economies weaken, deflation frightens all, prices weaken, profits fall, even as wages start the inflationary increases. But then, the financially robust companies with good markets will take off like crazy as the new, shrunken measuring stick is used to determine their values. Re the Q currency, I've never liked the idea of hedging. I'd rather be right, or lose [not the lot - have at least two legs on the stool]. I think that even if there's no Q or if there is and it's nothing to do with QUALCOMM, people will still buy huge amounts of CDMA so the company will have value enough anyway. If they also create a Q, that will be icing and cream [ignoring the health effects of icing and cream] on an otherwise highly successful business. The logic of money is that the state-owned fiat currencies must go the way of the dodo and moa. I really can't see them lasting as the dominant means of exchange and a large store of value. There is too much against them and not enough for them. I don't think anyone except me has priced a Q into the QCOM share price, so there's no risk yet. Even without the Q, $40 a share is a bargain for QUALCOMM [in my opinion]. Add the Q and $400 is a bargain. Cyberbank PC-Ephone here [it's in the QUALCOMM annual report] Message 16940156 Mqurice