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Politics : Formerly About Applied Materials
AMAT 328.29-3.4%3:59 PM EST

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To: Kumar Nathan who wrote (4145)4/27/1997 4:56:00 PM
From: Jeff Maresh   of 70976
 
Kumar - Relative to Alan G, it appears that the market it retracing its steps at this point and time to the big sell offs in 72(? 73?) and 87. The similarities are remarkable. A two tier market. A lot of emphasis on "big stocks that you can't possibly go wrong with". Steadily rising interest rates starting in the spring. Growing market speculation. These lead to the big sell offs. From what I've read, it is ultimately the fed raising rates that kills the bull.

The other thing to bear in mind (bad choice of words)... It is going to take a couple of quarters for the rise in interest rates to reflect on earnings. Like perhaps October?

Regards
Jeff
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