Forum Archive Index - January 2001

["hugh webber" <hugh.webber@clear.net.nz>]

I'd have to agree with the sentiments of 'a great way to leave the index
(NASDAQ)'.
I spent part of the last couple of days thinking, this is just more
incredible insane Lotto type stuff. The half percent cut in interest rates
does nothing to address the major structural problems in a lot of the 
Nasdaq firms. How does the half percent cut change the fact that
that people prefer physical shopping to Internet shopping? Solve
the problem of massive negative cashflows? Solve the problem of 
no profitability? Solve the problem of continuing huge P/E overvaluations?
Solve the problem of brilliant technical ideas that there's no market
for? 
Any upward movement in the Nasdaq, even if its a record one day rise,
is just a blip in the downward trend until it gets onto solid ground.
Similarly its hard to see telcos maintaining any sort of upward
momentum for more than a few days at the most.
I see that the Res Bk Australia is expected to cut interest rates
but not RBNZ. Why? The NZ$ is threatening our export led boom,
the building industry is dying. An interest rate cut is just what we need
to drop the NZ$ and continue the growth and its just what the RBA
did successfully a year or so ago while Brash watched unbelievingly
and did nothing while the Australian economy grew strongly and
soundly as a result.

.


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