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Strategies & Market Trends : Interest rate rise will trigger market crash / correction

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To: Ed Newman who wrote (17)3/28/1997 6:51:00 AM
From: Robert Scott   of 52
 
While many think we can continue to grow 4+% without inflation, Greenspan doesn't think so. His view is that if we can preempt inflation now, which he believes will occur with strong growth & low unemployment, the economy and companies will avoid a stronger correction later when you try to slow down inflation while its climbing. It takes awhile (generally believed to be at least 6 months) for rate increases to have an effect.

Perhaps all those other factors that have been mentioned in the past that signal tops such as incredibly high consumer debt, bankruptcys, and mutual fund investments will come to roost. If so, you'll start to hear after a few months that all is bad and the market is doomed - then it will be time to get back in.
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