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Strategies & Market Trends : The New Economy and its Winners

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To: Libbyt who wrote (6036)4/3/2001 1:11:08 PM
From: 16yearcycle  Read Replies (1) of 57684
 
My w.a.g. is that the economic destruction orchestrated by the fed will slow the economy for years and keep rates low. The energy crisis or potential crisis will pass as the economic situation will demand less energy and more supply will come on line. This situation will be similar to the market of 1992 to 1997, where growth was handicapped by banking problems, so rates stayed down. Consumer stocks will do quite well, I imagine, and companies like vrsn will have their market caps return to March 2000 levels.

So, i think the fed keeps easing over the next full year and then rates stay down for many years. I don't know what would have to happen for them to cut immediately. Imagining them doing anything smart is impossible right now.
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