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Gold/Mining/Energy : Position Trading in Canada

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To: Ward Nicholson who wrote (1247)6/9/1999 1:18:00 AM
From: bill  Read Replies (1) of 2259
 
Interest rates. American bonds hit 6% today. The blue chips took
a hit. Any idea how long the interest rate effect lasts? I've noticed
that news usually seems to have a three day affect. The fall back,
unless it accelerates, seems minimal considering the ratio
143.74/10,765. The raw number, 143.74, seems large but the increase
in the DOW means that percentagewise the move is not so large.

Do you know what interest rate is likely to have a severe impact
on dividend paying stocks? A stock paying 5.6% is, in Canada, at
least, is as good as a bond paying 7%+. Is there a point where
interest rate moves will overwhelm potential value?

Sorry for all the questions at once. I'm sure you can hear the confusion
in the questions. We've not had to deal with the effect of interest
rate hikes in a long time. However, if the Fed is really planning
three rate hikes between now and Dec. 31, we'll have to take their
potential effect into account.
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