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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Tim Bagwell who wrote (1433)9/4/1997 3:02:00 AM
From: Alan Bell   of 42834
 
Tim,

Thanks for your clarification. Maybe it is that simple - you are certainly right. He has said that the Fed doesn't like high growth rates but his own views are less recollectable. Lately, I have interpreted his views as being very pragmatic - the focus is on signs of inflation (or really the lack of any.) If there are none, then the growth rate is ok.

Truman - There have been other guests on CNBC that don't expect the fed to raise rates in October. Their argument was that the third quarter economic numbers would not be sufficiently available to make the call. This seems to make sense. Also, look at Tuesday, when the numbers showed no inflation, the market jumped. What indicator shows any sign of inflation?

Over the weekend, a caller asked if he should lock in a mortgage rate. Bob said no. With his expectation of lower interest rates and no signs of inflation, clearly Bob expects the Fed not to raise. (But given his past comments about Dr. Greenshades, he may consider the Fed's actions to be an exogenous event - one that is unpredictable :-) )

Alan
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