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Strategies & Market Trends : Waiting for the big Kahuna

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To: J.T. who wrote (3448)7/30/1997 3:33:00 PM
From: Tom Trader   of 94695
 
>>TT, I'm gona go long if you don't give me your sage advice on why the T Bond isn't at 5% to 5.25%<<

Hi JT--the reason that I did not respond is that I really don't know.

If I had to speculate, I'd say that the market has not got around to accepting that inflation has not been contained and therefore the real rate of return is a lot higher than it should be. BTW, Jimmy Rogers keeps posing the same question when he get on CNBC.

So the real question is whether the bond market is in fact reading tea-leaves any better than the experts -- and I don't know the answer to that.

Now promise me, you'll never go long this market:)
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