Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: UNDERTAKER who wrote (11306)	1/4/1998 10:19:00 PM
From: Thomas Scharf	Read Replies (2) \| Respond to of 77400

UNDERTAKER, the Asian crisis is the very thing that is causing downward pressure on U.S. interest rates. Money from Asia is pouring into the U.S. bond market. Increased demand means higher bond prices and in turn, lower interest rates. The devaluations of Asian currencies reduces the costs for all goods manufactured there which helps keep our retail prices low. It is hard for a U.S. manufacturer to raise prices when the price of imports is dropping. Likewise, manufacturing labor can't ask for excessive salary increases given the threat of having their jobs moved overseas. Look at Greenspan's comments in his speech Saturday. He appears to be acknowledging that deflation is becoming a bigger threat than inflation. I think he is laying the ground work for the Fed to lower short-term interest rates some time this spring. If they don't, we are in danger of seeing an inverted yield curve before the end of '98. Short/intermediate-term bond funds are the place to put any spare cash for the next 6 months or so. I'm also considering utilities which are interest rate sensitive and have absolutely ZERO exposure to Asia. DISCLAIMER: Everything above is merely my opinion, and we all know what opinions are like :-)