Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Boplicity who wrote (68938)	10/3/1998 1:30:00 AM
From: Boplicity	Read Replies (2) \| Respond to of 176387

Does the U.S. Have a Major Economic Problem with Wealth? By James Saft Reuters LONDON (Oct. 2) - As the bear market of 1998 tightens its grip on the world's throat, analysts are raising concerns that the sheer destruction of wealth will worsen slumping economies and markets. The worry, especially in the United States, is that consumers will cut back on spending in reaction to their stock market losses. This, in turn, may further slow the economy and hurt company earnings. ''The collapse we have seen in stock markets is going to have a big effect on what people can go out and afford to spend,'' said David Brown, chief economist at Bear Stearns International in London. The numbers are staggering. Some $4.3 trillion of stock market value -- greater than the gross domestic product of France or Germany -- has been destroyed worldwide since Wall Street hit its peak on July 17, according to HSBC Securities. And the carnage shows little sign of abating, with Germany's bourse down as much as seven percent and London's as much as three percent lower on Friday. The share falls themselves will translate directly into a cutback on spending by U.S. consumers and may prompt a deflationary spiral, according to Albert Edwards, global strategist at Dresdner Kleinwort Benson. The U.S. consumer is saving virtually nothing, he points out -- 0.6 percent of disposable income in the second quarter -- in large part because they believe their share holdings will provide them long-term economic safety. This has underpinned a massive buying binge in the United States, he said. ''The U.S. has a major economic problem,'' Edwards said. ''Consumer confidence is collapsing. If that brings the total savings ratio back to the 4.5 percent of a couple of years ago the U.S. will be seeing a deep recession.'' U.S. consumer confidence figures released on Tuesday showed the biggest falls since January. The link between stock market falls and consumer behaviour is far less valid in Britain and Europe, analysts say, where people are far less likely to own shares directly. Only five percent of Britons invest in mutual funds, and still less in Europe, compared to 37 percent of U.S households. Sharon Coombs, European strategist at HSBC Securities in London, said her research has shown little relationship between stock markets and consumer behaviour in Europe. But in Britain, where the City of London acts as a financial engine, market falls have already turned into job losses which could damage the economy. ING Barings, Robert Fleming and Daiwa Europe have all announced layoffs this week. ''It doesn't take too many hits on people with expensive mortgages to start to drag down (real estate) prices,'' said Brown. ''If we see more ING Barings it will hit the consumer sector.'' But some analysts think that a slowdown in consumer spending in the United States might be no bad thing, even if it hurts company earnings. ''This is not like the 1970s or '80s for most people,'' said Michael Hughes, director of Baring Asset Management in London. ''I'm not sure were talking about a deep recession.'' U.S. consumers will be insulated from the carnage by low interest rates, which will keep a lid on mortgage obligations, and the low prices of commodities such as gasoline, he said. But the outlook for shares is still poor, with lower consumer spending likely to drive profits down, he said. ''It is very difficult to justify a further rerating of U.S. shares if earnings turn negative but equally it is important not to get carried away and see this going into free fall.'' He said he saw 6,000-7,000 as ''fair value'' on the Dow, which stood at around 7,666 in early trade on Frid

To: Boplicity who wrote (68938)	10/3/1998 2:32:00 AM
From: Sig	Read Replies (2) \| Respond to of 176387

<<<< BUT, I also I have to admit that DELL is hanging in here, better then most of the stocks I follow. So I wait and let the market tell me what to do. >>> An excellent choice to listen to market rather than any analysts words. Thru purchasing small amounts of far more than 42 different stocks in the past 1 1/2 years,the market has always led me back to Dell. Yahoo, as you know, might have equaled it, but the down periods were long and painful, and the same with Mspg. There are others I don't know about that might have equaled Dell, just did not find them.. For example, I bought both Bac and Nb they day they agreed to merge, had to dump both a few days later. I would be just another casualty today if I had kept them. Then there was Phg and Asmlf and Klac, and etc,and etc. Even intc and cpq and msft in 1997. Make a few bucks, lose a few bucks, lucky to break even. Market always told me to buy dell, the best thing that ever happened .This is not advise, as I know you do fine, it is merely one of the many ways to end up in a great company without having to interpret all the fine print (and big plans)in those company reports. Since I cannot tell what the whole market will do, the next best thing to do is to stay in the game for the long term with the best stocks.Dell qualifies. (one of my wordy days, I guess)hehe Regards Sig

To: Boplicity who wrote (68938)	10/3/1998 8:16:00 AM
From: LWolf	Read Replies (1) \| Respond to of 176387

Greg... re : I have never seen this much fixation on one stock. Are you referring to the current press and analysts' acknowledgement of DELL's outstanding performance and continued growth potential (something we all knew, and DELL is finally getting its due), or this thread's behavior? I think one has to realize that this thread is a very special community, and it's quite famous. It has a following of very savvy loyal long term investors, and proselytizing for DELL that is uncanny. Tell me, if you talk to someone about stocks, do you recommend that they buy something else. I don't. I will mention other good stocks, if they feel they "need insurance", but I will tell them that their best bet is with DELL, for all the reasons we discuss on this thread. Kemble mentioned about being a small community that is converted to DELL. I live in a major metropolis and everywhere I go, I ask people what PCs and laptops they're using. Guess the answer... DELL! My company has converted to DELL, the banks, the people I run into in the car service stations carry their laptops use DELL, the vendors and consultant that we do business with are using DELL..... it's amazing! When the reports are coming in that DELL is outselling CPQ I believe it, because I see it all around me. [If you're concerned about the market gyrations, perhaps the next best place to have your money may be in LEAPS, or maybe even cash, but I don't think it's with another stock.] Laura