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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: westpacific who wrote (70011)4/14/2001 9:06:25 PM
From: ZenWarrior  Read Replies (2) of 122087
 
Common sense. 3 50 basis point cuts = interest rates which companies/consumers *will* put to use, especially now that there is fear long term rates will not go lower (and in fact will start to rise as companies grab those cheap rates, which they will then put into the economy via equip purchases, etc... we've already seen the start of that). Inventories have decreased for the first time in years: cbs.marketwatch.com

As rates go lower, consumers become more confident. As stock prices move back up, consumers get more confident. When rates go down, stocks become more attractive not only because of ROI, but because companies then have access to cheaper equipment. Confidence creates an improving economy as consumers start to spend, confident that things will be OK. I'm not sure what else you need to hear? This is economics 101. The Fed *will* pull us out of this... and after 3 rate cuts, you know you're around the bottom. Quite simple really.

- Zen
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