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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: Chip McVickar who wrote (2037)8/10/1999 8:56:00 PM
From: Hawkmoon  Read Replies (1) of 3536
 
A move to 7% seems ridiculous.

Not if Greenie, the Meanie, in a fit of anti-irrational exhuberance, decides to permit bonds to go up to the point where investors find bonds a lucrative alternative to a stock market that won't provide 25% returns any longer.

It will serve to deflate the margined stock positions out there as well as providing a firmer base of support for the market as we head into Y2K. This fall may truly become a T-Bill autumn, as overseas nervousness returns to foreign economies less prepared for Y2K than the US.

It also serves the purpose, I suppose, of permitting the Fed to then save that Americans are now "saving" more because their investment dollars are going into debt securities instead of asset based ones.

Funny world we live in.

Regards,

Ron
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