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Politics : Idea Of The Day

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To: J. P. who wrote (30434)1/13/2000 1:30:00 AM
From: fuzzymath  Read Replies (1) of 50167
 
I think the Fed has to raise rates, just to keep up with what's happened in the bond market since the last increase. In December, the FOMC telegraphed that it would increase rates in 2000 when it said that the reason it wasn't changing anything in December was because of Y2K concerns. They did not state that economic conditions didn't justify an increase.

Since then bonds have fallen substantially. They'll have to increase just to maintain balance between market rates and the "official" (i.e., Fed) rates.

My system says tomorrow is another risky day. I went into the market on Thursday, got the nice Friday and Monday gains, then took profits on Tuesday. Now I'm waiting for the next good buying opportunity.

Kevin Farnham
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