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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (74921)1/31/2000 1:46:00 PM
From: valueminded  Read Replies (1) of 132070
 
Mike/All

Whats wrong with my simpleton economic picture for stock prices?
1. Financing costs up (short and long term rates)
2. Producer Price index costs up
3. Profits by SP500 (essentially 80% of us market cap) up
4. CPI, inflation etc down and heading lower.

Well in my opinion: cant argue with #1, and if you believe the statistics(massaged as they are) cant argue with 2 or 4. So that leaves #3 as tough. It would suggest that growth in aggregate profits are going to be tought to come by. imo at least.
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