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Non-Tech : The Critical Investing Workshop

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To: Jim Willie CB who wrote (8365)3/20/2000 7:28:00 PM
From: Clappy  Read Replies (4) of 35685
 
I'm tryin' to get inside the Fed's Head.

It appears that right now Mr. Greenspan has the Nasdaq right where he wants it.

The houses have many fooled that the money belongs with the old establishment.

The Naz may be sitting with almost a 1/2 point discounted into it.

If the Fed raises 1/4 point, the Naz may resume it's rocket ride for a short while.

A 1/2 point is more than tapping on the breaks. The Fed clearly doesn't need a 1/2 point raise to curb inflation.
It's not even their style to make drastic moves like this.
It's usually 1/4 point, then watch and adjust accordingly.

There aren't any major indications that inflation is present. Fuel prices have helped to put breaks on the economy, anyway.

It seems possible that a 1/4 point is all that we will see. Perhaps a warning of future tightening just to keep us on our toes.

The summer stagnation will prevent the market from running away...

Election day will roll around soon after. I doubt if the Fed will do anything before then.

Do you think we are looking at the last 1/4 point raise for a while?

Is this 1/4 point enough to break the Naz for a while?
(I don't think so.)

Any thoughts by anyone?

-Clappy

P.S. We also have Japan in a recession and the uncertainty in Taiwan. I wonder is the Fed will leave rates alone...
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