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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Ilaine who wrote (15577)2/24/2002 6:00:04 PM
From: Don Lloyd  Read Replies (3) of 74559
 
CB -

Greenspan to affirm recession's end...

This pales in importance compared to how much of the economy goes through the windshield when AG begins to tap the brakes.

As a template for any good, including stocks, whose utility is largely in the future, the discounted present value of any infinite series of constant nominal cash flows will halve every time the discount rate doubles. This means that the lower interest rates are, the more risk is inherent in any future oriented good as interest rates increase.

Regards, Don
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