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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era -- Ignore unavailable to you. Want to Upgrade?

To: porcupine --''''> who wrote (753)	9/7/1998 4:15:00 AM
From: Berney	Read Replies (3) \| Respond to of 1722

Porcupine It seems very clear to anyone that took the time to read TII that the Master took great effort to demonstrate that there was, in fact, no relationship between interest rates and stock appreciation. Stock appreciation relates to one issue only: the relationship between the current expectations of stock appreciation (reflected in the PE ratio) and the projected and actual growth rate of EPS. IMHO Berney

To: porcupine --''''> who wrote (753)	9/11/1998 12:21:00 AM
From: Bob Rudd	Read Replies (2) \| Respond to of 1722

"That Deflationary Feeling" There has been a great deal of commentary recently indicating that deflation = depression and ruin for all. Since deflation amounts to more goods for a given expenditure, it's instructive to look at the computer industry where producers have had to deliver 30% more/better goods for 30 or 40 years. While many individual players have been blown away by Schumpeterian gales of creative destruction, the industry has grown to become a major engine of growth for the economy. Businesses like Intel and Microsoft have shown that it is possible to thrive in such an environment and we the consumers of that increased productivity benefit from it. Sorry to ramble and rant, but the idea that deflation is death has become so pervasive that I thought a bit of contrary perspective was in order.