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Technology Stocks : Western Digital (WDC) -- Ignore unavailable to you. Want to Upgrade?

To: fiberman who wrote (9716)	8/12/1998 7:25:00 PM
From: Stitch	Read Replies (1) \| Respond to of 11057

fiberman; My concern right now is with the market in general. I do think we have seen the worse in the DD sector from a fundamentals standpoint with the very notable exception of world wide deflationary worries and the market in general. The problem is that the DD sector has shed a good deal of its problems only to catch up with a stagnating market (and possibly economy). I think it is a good time for a defensive posture. I would not be surprised to see a bit of a rally in the market but do not believe it will be a lasting one and expect a deeper correction to occur..perhaps to the 7200 level or even below. This may not necessarily be bad in the long haul. The market is in need of a breather IMO. My longer term concern would be with a spiraling deflation and I am watching employment figures closely as well as inflows from mutual funds (which have diminished lately) and 401k programs. IMO if the market breaches 7200 before December then we may be in for a bear market throughout 99. If the market begins to recover then early 99 will offer some unprecedented opportunities for investment IMO. This would include the DD sector, semiconductors, semi equipment, and telecommunications. I think a lot depends on Asia now and the perception of how bad it will get. I have taken a very defensive posture and will continue to consolidate that over the next week or two, by the end of which, I expect to be nearly 100% cash. Best, Stitch