Intel Corp (INTC)

[COMMON SENSE]

I think the world is very optimistic right now

and no matter what the Intel report says it will either be discounted or cause market euphoria.

I remeber just a couple of months ago when Intel said great things were happening and Barrett said the market was over optimistic.

The stock is still climbing.

Of course it is the 80% market share and the investment in a leader in their industry that is the reason for investing in Intel.

But it is just as confusing to see AMD almost double during the past year when it has been in deep red for all that time.


Go figure.....

Until we get through 2003 and into January and February 2004 the market will keep optimistic and discounting of any bad news.

And how does the fact that September and especially October are the traditional market worst months stack up with this?


I think this is not the year when the market will tank but there is room for some modest correction.

As long as we have tons of money and tons of money managers willing to risk buying stocks and as long as there is almost zero return in investing in savings accounts forcing people to scramble for money returns over 1%- expect stocks to rise and people to flee into the stock market.

But the real risk is when this bubble bursts and the realities hit home.

Rising interest rates, federal debt at record levels, two unstoppable guerrila wars in Iraq and Afghanistan, the early spring 2004 primaries, and more corporate frad that hasn't really ever stopped.

That is what will do our economy in if it ever gets legs....