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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: John L. who wrote (24656)	9/27/1998 1:45:00 PM
From: Gottfried	Respond to of 70976

John, I'll take your prediction over John Murphy's any day. GM [end]

To: John L. who wrote (24656)	9/27/1998 3:52:00 PM
From: Big Bucks	Read Replies (1) \| Respond to of 70976

JL, What happens if deflation occurs in US markets/product prices to keep pace with the rest of the world pricing. Probably instant recession as the margins/profits dry up for companies manufacturing expensive products and investors see no benefit to the risk of investing in equities vs safe haven investments with little/no risk. This is probably the scenario we are just starting to go into. Would you be willing to risk your investment $$$ on uncertain stocks with uncertain profit outlook/potential with a maximum of 6-7% gains (before taxes) or invest in a sure thing like bonds etc, with a guaranteed investment of 5%. Most investors with serious cash will opt for the security of government sponsored securities with minimal downside risk, IMO. This "flight to safety" would cause significant downward pressure on the markets/stock valuations as investors seek the safe havens. Just my opinion, BB