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Politics : Idea Of The Day

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To: Mark Adams who wrote (17429)3/16/1998 10:37:00 PM
From: IQBAL LATIF  Read Replies (1) of 50167
 
Bond yields at 5.85 is in anticipation of this very point you have made- prices will and should decline as profitiblity increases for corporates. Oil prices are now projected to go to as low as 10$-- very soon you will see a day when market will be sold a 100 point on deflationary aspects of oil price weaknesses. I am expecting this Oil price weakness to help strong economy to cool down a bit-- the mainstream economists are Like Krugman still more worried about Inflation then deflation hence oil prices breaking thru key support of 14$ is going to help and add a balancing act to the economy.

I will assume lower interest rates and oli prices will be reflected partly in second quarter earnings but a full quarter impact may not be seen until third quarter so for me this holds welll for the market as my correction scenerio is limited to 992 area on SPM ( June contract).
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