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To: FDHIII who wrote (12559)7/10/1998 1:45:00 AM
From: Stephen  Respond to of 27307
 
Franz .. internet stocks will go with the market when interest rates rise .... however I personally think the economy will slow tremendously and rates will drop so its not an issue for me. The biggest threat to the internet and e-commerce is that taxation will be levied. It's going to happen and when there is any news ..... or Clinton's position becomes weakened or we near the end of term, be wary.

Good luck all

Stephen



To: FDHIII who wrote (12559)7/10/1998 3:20:00 AM
From: Bill Harmond  Read Replies (1) | Respond to of 27307
 
The lower rates go, the farther-out investors are willing to discount earnings, because those future earnings become more valuable compared to fixed-income securities. Since these companies' earnings are quite far out, low interest rates are critical. If long-term tates should rise, especially above 6.5-6.75%, then high-pe (or no-p/e) stocks like these would probably suffer badly, like winter, 1997.