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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: Seeker of Truth who wrote (52307)8/14/2004 3:58:35 AM
From: TobagoJack  Read Replies (1) of 74559
 
hello malcolm, I am guessing that inflation => higher interest rate => better bond yields => poorer consumers => weaker economy => weaker investors => weaker shares

... especially if the inflation is of raw material/energy, malpractice insurance/healthcare kind, and not of wages of j6p;

i may be wrong, but if i am wrong, it would mean that economic history has ended :0)

besides, i think you are correct in guessing that share valuation is high, and housing is way high, compared against earnings ability.

of course, there is nothing that would indicate a collapse tomorrow, next month, or next year, and so a measured pace is should be.

chugs, jay
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