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Strategies & Market Trends : Waiting for the big Kahuna

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To: Brad Bolen who wrote (26750)9/7/1998 1:49:00 PM
From: BubbaFred  Read Replies (1) of 94695
 
Greenspan is known to be adament on curbing any type of inflationary pressure. When he acknowledged there is equal deflation/inflation pressures, he is now more likely to reduce rate or keep it the same. Greenspan already expected the Asian fallout to arrive here, sooner or later, and he kept the rate unchanged in the last two months, despite some Fed members who wanted to raise the rate. Now, the possibility of raising the rate is very unlikely and the pressure to lower rate is mounting. Nevertheless, this expectation is good way to stabilize the stock market, and allow it to go down or up slowly. Watch the bond and the currency market. Both will have impact on how soon the Feds will make a move.
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