For investors, tech stocks have always been wobbly, with their stratospheric price-to-earnings ratios and fluid business plans -- now they're starting to careen, mostly downward, with regularity, and other bets are only getting better. The higher interest rates go, the more lucrative bonds and T-Bills are, ... When 30-year bond yields get over 7 percent, with absolutely no risk, money gets shifted out of the techs and put elsewhere.
More Quotes from Bernard Baumohl:
The central bank seems more worried than before that resources feeding the U. S. economic expansion are getting scarce.Bernard Baumohl
The latest batch of economic news does not paint a very encouraging picture on the sustainability of consumer spending.
Bernard Baumohl
The sharp pullback in economic growth during the final three months of 2005 shows the law of gravity has not been repealed. When consumers are burdened with heavy debt loads, rising interest rates, higher energy costs, no personal savings and household income growth that falls below inflation, something had to give. This retrenchment in spending was generally foreseen, though economists weren't sure on the timing and magnitude.
Bernard Baumohl
Bond traders are concerned that the economy may be growing too fast, given where we are in the business cycle.
Bernard Baumohl
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Based on Topics: Danger & Risk Quotes, Money & Wealth QuotesBased on Keywords: careen, price-to-earnings, ratios, stratospheric, wobbly
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