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Technology Stocks : Microsoft Corp. - Moderated (MSFT) -- Ignore unavailable to you. Want to Upgrade?


To: David Howe who wrote (686)10/25/2002 2:58:17 AM
From: Dave  Read Replies (2) | Respond to of 19789
 
Given that, 9% growth could easily translate into 9% appreciation for the shares.

The problem with your logic there is that 9% is much less than the future growth already priced into MSFT's high-flying P/E.

I expect MSFT share price to appreciate at twice the rate you would receive by investing in bonds, over the next 10 years.

First, your expectations, since you've been discussing MSFT, have been wildly optimistic. And second, you're forgetting that investments in treasuries are tax-deductible.

That said, you'd do much better just shorting the S&P500 for a while. Or shorting Fannie Mae, if you want to get a piece of the spectacular housing bust that should be starting pretty soon.

Dave