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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (70948)	8/27/2006 5:02:00 PM
From: Elroy	Read Replies (1) \| Respond to of 77400

So your theory is employees collectively are getting paid less so no one has the fresh money to buy the stocks? Seems a stretch. Wages falling like a rock isn't what I hear about the job market from anyone I talk to, although I am a bit removed. Even if its reasonably accurate, investor buying interest in stocks can cause them to take money out of other assets and put it into CSCO, share price increases don't have to be driven by CSCO employee purchases. Some guy somewhere runs a pension fund and decides CSCO stock looks better to him over the next 1-2 years than the 1-2 year local muni bond which he already owns, and voila, buying interest in CSCO, regardless of your payroll numbers.

To: Lizzie Tudor who wrote (70948)	8/27/2006 7:46:00 PM
From: RetiredNow	Read Replies (1) \| Respond to of 77400

Um, Lizzie. You are exactly wrong. Wages have been increasing steadily and consumer spending has been expanding over the last 3 years as people have felt rich because of the housing boom. Corporate profits have also been expanding, as you stated. The job market has been getting tight as well. All of those factors combined has led to a 3 year bull market. But oil, the end of the housing boom, inflation, and the Fed's increasing rates are starting to take their toll. We're in a pretty typical business cycle. We're at the tail end of a 3 year bull and now we're going towards the trough of the cycle.