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Strategies & Market Trends : Waiting for the big Kahuna

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To: bearshark who wrote (11009)12/6/1997 12:14:00 PM
From: Investor2  Read Replies (1) of 94695
 
RE: "The FOMC is caught between early inflationary indicators (wage issues) and a potential slowdown in the economy. [due to] The SEA currency devaluations ..."

Agreed. In my opinion, if the FED raises rates, it will signal that the SEA worries rampant in the market are overblown and that the SE Asia impact will be minimal. If the FED lowers, it will signal that the SE Asia impact on U.S. companies will be large. If the FED keeps rates the same, it signals moderate SE Asia impact. All of these observations, of course, are predicated on the assumption that Greenspan will not make a mistake. Based on his excellent job in the past, I think this is a reasonable assumption.

Best wishes,

I2
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