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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Maurice Winn who wrote (21907)8/1/2002 2:29:45 AM
From: Don Lloyd  Read Replies (1) of 74559
 
Maurice,

At low interest rates, any and all goods that provide part of their service in the future are necessarily and rationally bid up as their discounted present value increases as the discount rate falls. This would include all durable goods, as well as stocks, housing and real estate.

Regards, Don
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