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 : BORL: Time to BUY! -- Ignore unavailable to you. Want to Upgrade?

To: Neil Booth who wrote (8457)	1/8/1998 9:14:00 PM
From: Sam Scrutchins	Read Replies (2) \| Respond to of 10836

Maybe you're right. I was trying to give some examples of the risks around the world at present, and I don't believe that recently (even now) the market has been pricing it in. Maybe the two go hand in hand anyway. Neil and all, Maybe the following is fantasy BS, and maybe it's too many years of a surging world economy that's making me look through rose colored glasses, but here's a penny's worth. I've a notion that what is happening world wide is the best thing that could happen for the U.S. economy. Certainly, we may have a selloff in the averages, maybe a good sized one this year, but in the long run, a very minor recession or hopefully, a reigned-in expansion, is all that we will see. There has been some minor price inflation in the past six months in raw materials, evidenced by the commodities index, and in labor, evidenced by a relatively tight labor market and low unemployment rate, but nothing that has had any sort of impact on inflation fears or the interest rates all during the mid-1990's, even with a neverending economic boom. In fact, nothing seems to push our economy closer to the brink of collaspe right now. Given the small amount of inflationary pressures, AND the extreme healthiness of the current U.S. economy after decades of inflationary problems, I believe the Asian crises are a simply going to reign in what little inflationary pressures we have, and probably force U.S. corporations to become even more competitive. Again, this may put some near term pressure on earnings, but I suspect the duration will be short and the effects minor. I just do not believe that the Asian market place is all THAT important to the current U.S. economy. Further, if it causes the price of oil to fall to 12 or 13 dollars a barrel like some are predicting, it could do wonders for cost reductions and earnings. Just look at the Transportation averages and the divergence that is now occurring. Wonder why? Also, remember that this market thrives on negative economic news and the possibility of decreased interest rates. Why would that change now? Admittedly, this is simplistic, and I am not an economist, but what the hell, any comments? Humbly spoken, Sam