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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (8639)	1/28/2004 9:50:41 PM
From: Sarmad Y. Hermiz	Read Replies (2) \| Respond to of 25522

>> What is the issue? As usual, I do not see it. Brian, you don't see it, because it isn't there. yet! I think the issue is what we have discussed occasionally. If rates rise, even a little, home mortgage refinancing will dry up. So any funds generated by that activity will be removed from the money supply. And since employment is not rising, there will not be a replacement from higher earned income. So that's the obvious part. The less obvious is the idea that once rates start to rise, they will accelerate upward to stave off inflation. That is just a theory, but I think it contributes to the selling. I've noticed that any time there is a hint of higher rates, the market drops for a few days. Now that earnings news are nearly over, the focus will be on rates and GDP. I think the market treads water here for a while. Sarmad