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Pastimes : All Clowns Must Be Destroyed

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To: Lymond who wrote (29736)4/27/2000 12:44:00 PM
From: Defrocked  Read Replies (4) of 42523
 
Equity dippers, NASDAQ in particular, must not
believe that there will be three more
Fed hikes to slow down excessive domestic
demand growth. The low inventory build in Q1
may actually keep Q2/Q3 at 5% or higher when
coupled with the Q1's 8.3% PCE momentum, which
is unlikely to slow substantially.

The Hawks on the FOMC that were pushing for
50 bps in February really have a case now at
the May meeting. Today's equity action, so far,
may also imply that the Doves will win out with
only 25bps.....which is probably negative for bonds.

Any comments, please?
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