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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 670.92+0.1%Nov 7 4:00 PM EST

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To: r.edwards who wrote (60747)10/17/2000 2:37:55 AM
From: Metacomet  Read Replies (1) of 99985
 
Not too clear was I?

The implication I was making is that inflation could undermine the equities market causing a rotation out of stocks in order to lock in capital gains.

I think this is referred to as a flight to quality, or fixed investments such as bonds.

Obviously these are not the most lucrative investments in a period of inflation, just the safest.

If there is substance to this theory, I would expect The Street to discount its effects immediately after the election, or even before based on the polls.

Rather than speculate on secondary effects, I would like to know if anyone thinks a trillion dollar tax cut, targeted as discretionary funds due to the recipients, will be inflationary?

If so, what effect would this have on the markets?
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