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Pastimes : Ask Mohan about the Market

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To: Bonnie Bear who wrote (7423)11/8/1997 1:06:00 AM
From: Brad Bolen  Read Replies (1) of 18056
 
Bonnie,

If I understand you correctly, why do interest rates have to go up to cause a full correction? Isn't the danger now an oversupply of stock (Asian) and product on the international markets...which bonds and gold are now telling us is deflationary?

B.

>>>To: +Haim R. Branisteanu (7417 )
From: +Bonnie Bear
>>>>>>Friday, Nov 7 1997 11:36PM EST
Reply #7423 of 7429

>>> SPX 650 is a full correction to the international index, 800 is the fed's number for full value IF the earnings
projections are correct.
So my guess is that it will settle in that range. We will not see a full correction until interest rates go up or a
fear-based correction hits the financial sector.
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