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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: hpeace who wrote (8702)	11/8/1997 11:41:00 AM
From: ed	Read Replies (2) \| Respond to of 97611

How do you know the relation between dow and cpq will hold ? example: Intel went up yesterday while Nasdaq went down. This can happen to dow and cpq too. Generally speaking, based on yesterday's Intel's performance, the optimistic sentiment has came back to the Tech sector!!The rest is up to when the south east currency get stabilized. The countries which got currency problems are those with high debt!!! I think those countries' currency has been depreciated to a balance level and will stabilize pretty soon !!!!When you have a high foreign debt, you have to flood the domestic market with local currency to buy dollar to pay off the interest !!! There is a certain ratio between the revenue and total capitalization, to maintain that ratio, and a reasonable stock price with more shares, the total revenue need to be expand accordingly. That is the reason why I think the company is very optimisic about the future, and Andy Groove said it all on Friday, the PC market will continue to expand fast , and South East asia's currency will not have much on its business, this confirm CPQ's CO's statement. If CPQ had a problem as a result of the currency problem, it will have an impact too!!! The old thinking about the economy is when the economy expanded fast, Fed hike the rate to slowdown the economy(fear of inflation) which eventually ended up with recession, and higher deficit and higher rate and deeper recesion , and less tax and more deficit and ...... dead loop. Now , productivity came to play, i.e economy grows with higher productivity, and more tax income for the government , less fed deficit, lower rate, less inflation pressure as a result of higher productivity ( productivity increased faster than the wage hike), the market has more cheap products as a result of productivity increase which is faster than wage hike.People have more money to consume as a result of wage hike (Workers are rewarded for their productivity), and economy continues to expand with very low inflation . As more companies pay tax, government has much more room to reduce the tax, as well as the rate. So productivity is the key factor to kill recession and economy down turn.