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Technology Stocks : Western Digital (WDC) -- Ignore unavailable to you. Want to Upgrade?

To: William J. Leiby who wrote (7602)	11/14/1997 4:02:00 PM
From: Vanni Resta	Read Replies (1) \| Respond to of 11057

Ok, great! I missed this. So what can you add to the discussion now? EOM

To: William J. Leiby who wrote (7602)	11/16/1997 4:58:00 PM
From: kormac	Respond to of 11057

Bill, The competitive SE Asian currency devaluations are indeed troublesome for investors that are long on tech stocks. Taiwan, with the strongest currency and third largest reserves in the world decided to devalue also some time ago and the pattern continues with Japanese, which is the largest creditor nation. This, of course, is the easiest way to cut prices of all tech products coming from these countries. China also made a competitive devaluation this summer. I don't know how long this downward spiral will continue and for this reason I am in cash and I will not buy any tech stock for a good while. It is difficult to predict the forward P/E ratios and secondly the stocks will settle down to lower than traditional P/E ratios in these kind of times. My view is that the overcapacity that is now present in many industries across the globe will be exported to the US as deflation. For a first time in a long while the entire world is in a danger of falling into a deep recession. The depression of 1930's was caused by investment led overcapacity. The same is true in regard the Japanese recession that started over ten years ago. Best Regards, Seppo