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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (11837)	9/25/2003 9:59:44 PM
From: Return to Sender	Read Replies (1) \| Respond to of 95541

First: Stocks can and do rise with increasing interest rates. In fact it is one of the things that has to be expected during a strong economic recovery. Of course if stocks are too far ahead of fundamentals then who knows. Remember this chart. Please page down: stockcharts.com Second: Money can also stay on the sidelines by being invested in numerous hard assets. Stocks and bonds are not the only alternatives. A stock is sold to a market maker who holds it in inventory long enough to be passed off to a buyer. When a bull market top takes place like it did in 2000 then some of that extreme amount of money that was created by the raging bull market is taken out of the market. Where else can it go? Bonds Real Estate Gold and other hard assets Collectables Money Markets And many other areas with no guarantee that it will return. When stock market value falls it happening because there is too much supply of stock for the available money which resides in other asset classes. Market makers have to mark down prices to drive up demand because that money sitting on the sidelines just is not interested in the risk to reward situation. RtS