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

To: Return to Sender who wrote (28970)	3/1/2006 5:50:34 PM
From: Donald Wennerstrom	Read Replies (3) \| Respond to of 95757

RtS, Your statement kind of "says it all". <<We have a real tug of war going on.>> The market has become very schizophrenic in the past few weeks. It wakes up in the morning, takes a look at the news, and then decides what it is going to do.:) The NASDAQ was up 20.14 on Monday, down 25.79 yesterday, and up 33.25 today for a net gain of 27.60 for the 3 days. It has done nothing for the past 2 months except "wander around" in the 2220 to 2330 area. First it goes up for a day or 2, and then the Bulls get real excited, and say "this is it, we are on our way", and then it goes down for a day or 2, and then the Bears get real excited, and say, "this is it, we are on our way". In the meantime, the NASDAQ is "averaging out" and going nowhere. This is real exciting stuff!!!:) Don

To: Return to Sender who wrote (28970)	3/1/2006 6:37:05 PM
From: Sarmad Y. Hermiz	Read Replies (3) \| Respond to of 95757

rts, I am sure you've heard all this before. But I think the inverted yield curve will have the opposite effect from what you expect. An inverted yield curve means low long term rates. Which means that there is a large amount of money available to be lent. That came about from 2 sources. 1- foreigners swimming in dollars from their trade surplus. 2- US companies swimming in same from their accumulated profits. Neither of these sources is bad for the economy. Foreigners have nowhere else to put their money - so basically the money is funding the real-estate boom in the US through low-cost mortgages. And companies will either buy back stock, give big dividends or make investments. All these usages lead to higher growth. There are circumstances when inverted yield curve occurs at approximately the same time as a slow down in the economy. But in the current environment there is no reason to expect a cause-effect relationship. Sarmad