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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: chomolungma who wrote (171705)	10/22/2002 12:46:21 PM
From: GVTucker	Read Replies (1) \| Respond to of 186894

I'm sure there have been weird periods where low P/Es existed with low interest rates and vice versa, but I still believe that there exists a fundamental reason why that is not normal. Sure there's a fundamental reason. There always is. But the number of times it has happened is high enough that you have to start searching for alternatives. In fact, prior to the advent of the inflationary times of the mid 70's, the equity market was closer to being inversely correlated to the price of bonds than directly correlated. High rates meant a good economy and good earnings, thus good stock prices. When you look at the recent trends (on days when stocks go up in the US now, bonds go down...also, the past decade in Japan), it would behoove you to go back a ways on the data.