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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

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To: Justa Werkenstiff who wrote (6252)6/24/1999 9:32:00 PM
From: MrGreenJeans  Read Replies (4) of 15132
 
Barron's / Alan Abelson

I laugh at Alan Abelson's column every week in Barron's since he is the resident bear and has missed the bull market since at least since the early 1990's but this week's column caught my attention. He makes the case that the Greenspan will raise rates more than once to slow the economy in the name of fighting inflation and strong growth but the underlying reason is equity valuations. He argues that all time high equity valuations are contributing to stronger than expected economic growth due to the wealth effect and this is fueling strong consumer spending...yada...yada...yada...and goes on to state that Greenspan is orchestrating a slow decrease in equity valuations by incrementally raising rates starting at the end of June under the guise of fighting inflation.

To me this was an increasing perspective...any feedback?
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