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Politics : Idea Of The Day

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To: Skywatcher who wrote (30567)2/1/2000 3:21:00 AM
From: IQBAL LATIF  Read Replies (1) of 50167
 
You are right Chris but unless we have some good evidence of slowing economy we will have higher volatility, please look at my post it highlights the fact that market ways of discounting are different...before we had three cuts in Oct 98 due to global recession in July 98 we were expecting hike, my little experience tell me that with global demand increasing and wage pressures multiplying we may see that recent'smoking gun' ECI evidence may lead the policy makers to over react..thsnkd as always..
<<The market needs to build a lot of cushion for new hikes expected to be in excess of .75% in next three months, the problem is that market is coming out with great earnings but the economy is firing on all engines and now the market wants the evidence that monetary policy fine tuning can work to slow the economy, the 'productivity gains and corporate profits' provide evidence that relationship between interest rates hike and cooling of economy is breaking down and that is real worrisome event, like inflation employment breakdown this new realisation has all the potential to give strong jitters that may shake this market further... >>
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