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

To: eddie foree who wrote (130099)	6/1/1999 12:30:00 PM
From: D.J.Smyth	Respond to of 176387

this interest rate concern actually helps increase PC demand as companies strech to load up prior to potential rising rates. and, obviously, there's a lot of this bias built into the NAPM - companies expect an increase, therefore...

To: eddie foree who wrote (130099)	6/1/1999 2:50:00 PM
From: Chuzzlewit	Read Replies (3) \| Respond to of 176387

Eddie, the Fed is irrelevant other than as a bully pulpit. Long term bond rates are set by free markets. Right now we are seeing long bond rates edging close to 6%. That implies that lenders are forecasting 3 - 4% inflation. Real rates of return (inflation-adjusted) have historically trended in the 2 - 3% range. There are some implications to consider. Is modest reinflation necessarily bad for Dell? I don't think so because I think that the major source will come from Asia. That being the case, I think that Asian computer sales will be a driving force for Dell over the next few years. On the other hand, any perception of increased inflation causes the equity markets to slip. We will just have to see which factor will provide greater influence. TTFN, CTC