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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

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To: Wally Mastroly who wrote (9693)11/5/1999 1:00:00 PM
From: Justa Werkenstiff  Read Replies (3) of 15132
 
Wally: Re: "Comment: - what can slow the Bull? ...only the Fed...but why?"

1. Perceived asset inflation leading to increased economic activity beyond the moderate growth rate which the Fed. will tolerate.

2. The leading inflation information you posted today. Will the economic slowing be enough to slow this trend? Not if the market heats up again IMO to record valuations with the fat and happy going on a spending spree. It's Christmas, you know.

3. The historically low unemployment rate which is unsustainable in the eyes of some Feddies. Kudlow says if a company can't find workers qualified and willing to take a reasonable wage, it will not hire them. Yeah, how long will that last for if business is booming and the company gets some pricing power. Moreover, the Fed. seems to be acting preemptively against the natural development of such a situation.

We landed on a good number today in the form of wage inflation. Rally ho! I would watch the close today especially in the NASDAQ to gauge how much of a good thing has been priced into this market already.
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