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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: MtnMan who wrote (17607)	5/19/1998 11:12:00 PM
From: j g cordes	Read Replies (2) \| Respond to of 25960

Neal, you can still ask a big question <g>. You've got the inflation culprit identified properly, its in equities.. but that's not as big a problem YET as it seems. Looming on the horizon, indeed today, a bill was put on the floor to raise the SS collection age to 70.. AND mandate a portion of your Fed retirement go into the equity and bond markets. That's right, if you thought the market could get a significant PE with IRA's, wait until Congress redirects the SS spigot to wall street. In my opinion this will certainly strengthen the center, in other words.. your well managed low volatility stock with a pe of 8-12 will go to 20 because a cash input floor will be put under it through legislation. It raises the bar on the perceived invulnerability of all stocks, which in a bid/ask market actually makes the total more vulnerable... also, if you believed the market was too high, could you sell? A good point will be it moves money out of Congressional borrowing/spending and can't be used to balance... who knows.. if its collected by Federal law then it will one day be utilized. There are downsides also. Here's the article: "Tuesday May 19 2:02 PM EDT Bipartisan Social Security plan introduced By Jonathan Wright WASHINGTON (Reuters) - Members of Congress Tuesday presented a plan to save the Social Security system from collapse in the 21st century by raising the retirement age and adding a private investment component. Members of the National Commission on Retirement Policy (NCRP) said they hoped to draft legislation based on the plan within two weeks, for submission to the next Congress in 1999 and for implementation starting in the year 2000. The detailed plan tries to strike a balance between economic conservatives who favor privatizing Social Security and liberals who say that with stock market fluctuations millions of retired people risk ending up impoverished. The plan would raise the normal retirement age from 65 to 70 by the year 2029, adding two months every year. Early eligibility age would increase from 62 to 65 by the year 2017, also by adding two months a year. The plan would also take two percentage points from the 12.4 percent payroll tax and invest that money in Individual Savings Accounts, in the expectation the return will be higher than the average 2.7 percent which Social Security has produced. "The goal is to have people more involved in their own savings... Some people say it's too risky and we can't afford it. I would suggest we can't afford not to do it," said Sen. John Breaux, a Louisiana Democrat and a commission chairman. The investors would have a choice of low- to medium-risk instruments -- indexed stock funds linked to the Wiltshire 5000 or the S&P 500, a bond index fund, a blended index fund including stocks and bonds or a government securities fund. '' Remember that line by Meg Ryan.. I'm going to point to the government list of stocks and say "I'll have what she's having." Regarding CYMI, it has more downside, but when it does turn on a competitive pickup in Asia its going to catch fire.. stay posted. Jim