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


To: Sarmad Y. Hermiz who wrote (11841)9/25/2003 10:30:34 PM
From: BWAC  Respond to of 95530
 
Now thats only part of it.

Pension plans are also calculated to be underfunded based on the % they must assume as a rate of return. And that is correlated to the interest rate. Accrued Pension Obligations is basically a fixed number. The current assumed rate of return on $XXXX of assets tells whether the plan is over or under funded at any given point in time.

Also, 401K money can easily go to Bond funds if the interest rate is appropriate.

And markets and individual stocks can rise into rising interest rates. IF sufficient earnings growth is there to support the rise.