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Technology Stocks : Hewlett-Packard (HPQ) -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (484)	5/20/2002 1:13:59 PM
From: MeDroogies	Read Replies (1) \| Respond to of 4345

My belief is that given the heavy downward pressure on prices for the last 5-7 years (due to productivity gains, technological improvements, workforce pay packets comprised primarily of options, etc), prices had to remain "sticky downwards". Given the excess inventory, it's unlikely that prices would rise dramatically EVEN IF demand rose (barring a large spike). Manufacturers are going to look to make money by keeping prices flat/up slightly even when a good demand model would "call" for falling prices. Anirvan has given a good accounting of why this recession REALLY WAS a recession. I can appreciate his data and standpoint. It's compelling. I'm not sure I agree. I just think the last round of growth was overly excessive and borne on the backs of overwhelming optimism. Had the last round of growth NOT been so large, we probably would have still gone through a slowdown...but it would have been considered less acute and, therefore, not a recession.