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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: Ex-INTCfan who wrote (50654)4/27/2002 11:54:02 PM
From: Jim Willie CB  Read Replies (3) of 65232
 
latest US money supply in decline, bad for stocks
GreenMan is offsetting his low rates by tighter money

stls.frb.org

did same thing in early 2000
led to stocks declining off peak back then
more of a negative to stocks than to economy
economy relies upon interest rates more so

GreenSnot is caught in a box, sadly
inventories have been replenished, resulting in 5.8% GDP
some minor business investment has resumed
we will see if it sustains

two tough ratios to consider
1. S&P now at PEratio roughly equal to 2000 peak !!!
2. inventory ratio now roughly equal before the recession

inventory ratio = inv level / product demand
despite lower inventories, demand is meagre and lower
/ jim
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