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Strategies & Market Trends : Investing during a Bear Market

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To: studdog who wrote (84)11/11/1997 3:54:00 AM
From: Alfred W. Post  Read Replies (3) of 226
 
I like you to comment on my home made theory on interest rates: I have come to believe that the actual cost of money is about 3%. Add to this the infation rate and you arrive at the theoretical interest rate for a particular country. If their is a difference between this theoretical rate and the actual rate, this shows you the direction in which interest rates will develop. Greenspan has not yet discovered my secret formula, but he acts, like he knew it. With this said, therE is a grEeater feasibility of sinking than raising interest rates in the USA. Naturally you have to add to this other and in part political considerations. But I have found, that my formula gives me the necessary assurance of my own prediction during a time when they all are discussing this problem and making you unsure. WHAT DO YOU THINK ABOUT "MY SIMPLEFORMULA" . i FORGOT TO MENTION THAT i HAVE DIFFICULTIES IN CHOOSING THE CORRECT MEASURE OF INFLATION, IS IT THE CPI, th wohlesale incex or the deflator? yours Fred from Switzerland
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