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Strategies & Market Trends : Why the markets will continue higher...

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To: GROUND ZERO™ who wrote (580)1/24/1998 7:05:00 AM
From: Cage Rattler  Read Replies (1) of 745
 
GZ:

The question that concerns me is the correlation between the LB rate and the equities. I am of the opinion that during an established bear-equities market the correlation will be positive. Initial increase in bond rate, it is argued, may precede a sharp long-term equity drop, but only briefly.

Today your decision seems very reasonable. Nevertheless, I suspect a long position on Treasuries may become very profitable in the not too distant future and I have more uninvested cash on hand than I am comfortable with. Therefore, if the bonds continue their short-term rate up-turn as you believe, would you please let me know when you sense a reversal is eminent and/or you change your position?

By the way - did you know Neut met with Gates in Seattle quite recently? Very interesting.

Enjoy the beach and I'll try to enjoy the freezing rain beating on my window!

Ciao, Ted
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