SI
SI
discoversearch

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: Sabrejet who wrote (83468)12/3/1998 9:14:00 AM
From: Mohan Marette  Read Replies (2) | Respond to of 176387
 
The lower rates will boost demand for U.S. goods by lowering
the cost of financing business and encouraging consumer spending,
analysts said. Banks such as J.P. Morgan & Co. may gain on the
interest-rate cuts as lower rates boosts demand for credit and
loans.



To: Sabrejet who wrote (83468)12/3/1998 9:27:00 AM
From: BGR  Read Replies (1) | Respond to of 176387
 
seczebra,

First, remember that many U.S. companies - including most of the larger ones - are multinationals. They often set up and finance their operations in Europe (now costs will be lower) and always sell products in Europe (now more buying power for their European consumers) just as they do in the U.S. - so what is global is local too. Next, this will (hopefully) mean that Europe will start absorbing a larger section of the flood of cheap imports from S.E. Asia and S. America thus improving the profit margins for domestic U.S. companies which compete in those sectors. However, this also strengthens the dollar against the European currencies/Euro, thus implying a drop in U.S. exports to Europe. But I feel that the two positives will more than make up for the negative.

-Apratim.



To: Sabrejet who wrote (83468)12/3/1998 10:13:00 AM
From: J. P.  Read Replies (1) | Respond to of 176387
 
I think any rate cut makes for a natural percentage asset allocation from debt to equity.