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

To: Donald Wennerstrom who wrote (61168)	8/21/2013 3:22:02 PM
From: Sam	Read Replies (1) \| Respond to of 95531

OT-- Preferred stocks are the stocks that people use as bond substitutes, and they have been taking a beating along with bonds. But people buy stocks for other reasons besides the flow of dividends. If the fed does begin to taper in Sept, it will be because it believes the economy is strong enough to withstand it. It won't be withdrawing all of the stimulus at once, it will be doing it a little at a time, although market participants appear to prefer to think in terms "all or nothing". If the economy does continue to grow, then many companies will continue to grow their earnings. That is the basis on which many companies trade in the market, not their current dividend rate. At least in the long term. The Big Money people who trade love to have stocks go up and down in big moves, though, that is how they make their big bucks, so I am sure we will be seeing a lot of volatility come September. Up and down. With little regard to actual earnings. Or dividends, for that matter. Reading people like Tyler Durden (who has been posted here a number of times) is tantamount to reading the list of risk factors in SEC filings. Over and over again. If that is all you read, you will never ever buy a stock. And never ever believe for even a second that anything good can possibly be happening in the economy. Granted Brett Ahrends isn't quite the same as Durden, but he isn't that far off from him either.

To: Donald Wennerstrom who wrote (61168)	8/23/2013 5:32:23 PM
From: Jacob Snyder	3 Recommendations Recommended By Donald Wennerstrom Return to Sender Woody_Nickels Respond to of 95531

Excellent article, Don, and excellent discussion. 1. Ultra-low interest rates have allowed companies all over the world to issue junk bonds in record amounts. Rising interest rates, and junk-to-AAA spreads widening, will shut down that flow of easy money. That will reduce capex, hiring, stock buybacks, etc. 2. Foreign central banks have recently started reducing their U.S. Treasury holdings. So the tapering has already started. 3. any sharp downmove in stocks will be amplified by margin calls, since margin debt levels are so high. 4. recent strength in the housing market will be throttled by higher interest rates. disclosure: I've been selling my solars into recent strength, and am now almost completely out of all my long positions. I'll take short-term long positions on market dips, but no long-term long positions until the next recession.