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

To: Gottfried who wrote (29861)	4/7/2006 12:10:59 PM
From: Donald Wennerstrom	Read Replies (1) \| Respond to of 95616

Gottfried, I think it is not the rate itself, it is more the uncertainty of when the Fed is going to stop raising the rates. Apparently, the "market" wants to know when the Fed is going to stop. This "paranoia" has been going on for months now, and no one knows when it is going to stop. Whatever it is that is ailing the market is causing a lot of "deep red" today. The semi-equips are getting hit quite hard. KLAC down 3 percent, AMAT down 2 percent, TER down 3 percent, NVLS down 2 percent, and the SOX and SMH are down 2 percent. Don

To: Gottfried who wrote (29861)	4/7/2006 12:55:40 PM
From: Return to Sender	Read Replies (2) \| Respond to of 95616

G, you are over simplifying. Rising interest rates are never good for the stock market. That does not mean that the stock market cannot rise in a higher interest rate environment. But whenever government bonds pay a higher guaranteed rate (without risk) compared to the unknown payoff offered by the stock market the stock market will see less potential dollars inflowing. Now look again at the time period you described: investorshub.com The stock market did not become attractive until long bonds were paying more than 3 times higher than the 30 day T-Bill. Do not minimize the small inversion we had earlier this year or trivialize the rise in rates. That is a mistake. The FED may not be anywhere near done raising rates. It is the relative performance of bonds versus stocks, long term yields versus short term yields, risk versus guaranteed returns that are important. It is not the actual level of interest rates in my humble opinion. RtS

To: Gottfried who wrote (29861)	4/7/2006 7:31:24 PM
From: Kirk ©	Read Replies (1) \| Respond to of 95616

"we have certainly had rising markets in the past when treasury rates were considerably higher than they are now." It is just an excuse to give everyone three days of fear for the price of a weekend. Make a lot of noise so people sell to the big guys so they can resell it to you in a few weeks after they run it up again. My largest holding is exploding to the upside CACS Charts investment.suite101.com Up another 6.5% today... I hope you all got in under $5 or even $6 as I've sure talked about it enough here. More info investment.suite101.com I'm not sure what sector was hated more than telecom... but the SOX stocks should follow because all that equipment and the end users sure need chips. Can you imagine how many chips will be consumed and how much fiber used to give every decent city WiFi? -g- K