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

To: chomolungma who wrote (171709)	10/22/2002 1:39:26 PM
From: GVTucker	Read Replies (2) \| Respond to of 186894

But I suppose it comes down to your forecast of where the American economy is headed the next couple of decades. If you believe we are following the Japanese, then it doesn't take much analysis to avoid stocks and just take that 1% treasury rate with a smile and a thank you. I don't fall into that school. I see 4%, or greater, GDP growth for the next 20 years and corporate profits growing a couple of points in excess of that. The fed and low inflation will keep interest rates low and investors will bid stocks back up above 20 times earnings to give them a earnings yield comparable to a 5% bond. It is very difficult to guess the direction of any individual equity. In is darn near impossible to guess the direction of the overall market. It is more difficult still to guess the direction of interest rates. To pin an equity strategy based upon interest rates is not something I'd recommend doing.