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.

Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Outer-limits who wrote (9155)	7/1/2002 2:32:47 PM
From: chomolungma	Respond to of 9256

Careful, we may actually revive this dormant thread.<g> Re: Inventory building: Yes, much of the "growth" was inventory related - as was much of the prior decline. But you can't call it "inventory building" yet, because all it really was was the slowing of inventory liquidation. In the first Q, we went from a nominal decline of $114 billion to a decline of $34 billion. This $80 billion boost to the economy was half the growth in the first quarter. Still, we are not yet building inventories and they are at historic lows in relation to sales. Re: Tech spending: I believe tech spending has bottomed. Orders for durable goods are moving up. The future for tech is still extremely bright, IMO. I believe that most are missing the mountain of spending that the rest of the world will produce, even as the U.S. market matures. Remember, the U.S. economy is now less than 1/4 of the total world economy and getting smaller by the year. Re: Other Enrons or Worldcoms: Always possible, but their effect is mostly psychological. There aren't likely to be 100 or 1000 Enrons and as it becomes clear that 99% of U.S. companies aren't guilty of abuse, the memory of Enron fades and loses its ability to move the stock market. I point to other scandals in the past as evidence of this. Re: Terrorist attack: Yes, that's a threat, but outside of a nuclear bomb, the economic effects of a terrorist attack are again, psychological. If you are worried about weapons of mass destruction, then your investment options are limited. Re: Dollar: The dollar will continue to fall, IMO. This is unequivocally good news for U.S. companies as I mentioned earlier. It may stop speculation in U.S. assets from abroad, but higher earnings will bolster stock prices. Just look at the period after 1985 when the dollar dropped. Stocks did very well. Re: Public feels betrayed and has lost confidence: That's always the feeling at the end of a bear. After the market moves up a bit, professional investors and the public alike will feel they are missing the next bull and flock back to stocks. Fear turns to greed very fast.