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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: JZGalt who wrote (8196)8/13/1999 11:07:00 AM
From: OldAIMGuy  Read Replies (1) of 18928
 
Hi Dave, I guess I'm all alone in thinking that the FED will leave interest rates static for this month. I really don't spend a lot of time thinking about such things, but do recognize the impact it has (as in the Relative Valuation portion of the Idiot Wave).

Since we're already well above the average for Relative Valuation, we can not tolerate an increase in interest rates without a contraction in P/E. We can always earn our way out of the problem, but we won't see those numbers for a while.

Well, there's plenty of cash on hand in the Equity Warehouse's Savings and Loan division. So if Mr G. triggers a bit of buying, we're ready with our "good 'til cancelled" orders.

Best regards, Tom
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