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Non-Tech : Philip Morris - A Stock For Wealth Or Poverty (MO)
MO 65.37+0.3%3:59 PM EST

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To: Rarebird who wrote (2265)9/4/1998 9:52:00 AM
From: Geoff  Read Replies (1) of 6439
 
In a global deflationary environment, lower interest rates are NOT Bullish for stocks.

I disagree. Low interest rates in the US would alleviate much of the currency concerns abroad. Everyone wants dollars, period. Lowering rates here, and printing more $ could help more than we know. At least that is according to our chief economist here. I tend to agree with his views.

The key is whether the Fed lowers rates. If the contagion affects Latin America much more, I think the Fed will have almost no choice but to lower rates because of the fear that the US economy could finally be dragged into a recession.

later,
geoff
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