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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: Jim Willie CB who wrote (50787)5/1/2002 11:24:07 AM
From: stockman_scott  Read Replies (1) of 65232
 
The Money Analyst - May 2002

Commentary by Tracy Herrick [Jefferies' Chief Economist]

This link contains full comments and some great charts...

jefco.com

<<...Operating earnings of the Standard and Poor's index of 500 stocks will likely turn from a decline of 44 percent in the fourth quarter of 2001 to a gain of 10 percent in the fourth quarter of 2002, on a year-over-year basis.

Yet this recovery in profits would not likely overcome the dampening effects from higher interest rates.

Short-term rates will likely rise in the second half of 2002 and in early 2003. The federal funds rate could rise from 1 3/4 percent in mid-April to 3 percent by year-end 2002, and to 4 percent by mid-year 2003...>>
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