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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread
VTI 340.140.0%Jan 8 4:00 PM EST

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To: Wally Mastroly who wrote (867)3/21/2001 5:51:28 PM
From: T Bowl   of 10065
 
Wally -

<<Mr GJ, FWIW, Today's CPI/Core CPI (including Year Over Year), will not encourage Dr. Greenshades to accelerate the rate cutting.>>

Of course NOTHING is going to encourage him to accelerate ANYTHING... However, I'm not sure it will have much effect on his current thinking.

If FIG is truly ahead of it's time by around 11months, and you think it's a valid tool, then the recent core CPI data shouldn't be surprising. Those "pressures" should start easing significantly in the next month or two. Maybe a leveling off for a few months, then back down to 2% or so.

Also, we all need to keep in mind that those "scary" core CPI numbers actually aren't all that scary at all. It's very very low at it's current level. The FED has decreased rates significantly when that # has been much higher.

Overlay FIG+11months and Core CPI. Pretty high correlation.

todd
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