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Politics : Formerly About Applied Materials
AMAT 223.31-3.2%Nov 13 3:59 PM EST

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To: Jacob Snyder who wrote (25055)10/8/1998 6:31:00 AM
From: Duker  Read Replies (1) of 70976
 
<<<1. Protectionism (in the U.S. and elsewhere) wins the political battle for "hearts and minds". The only result of this can be a spiral of reciprocal tariff raising, collapse of world trade, collapse of living standards, and a prolonged global depression. I hope we aren't stupid enough to repeat the mistakes of the 1930s.

2. Signs of inflation appear, while profits have not yet recovered. This would require the Fed to raise rates, even if this knowingly causes a recession. I find it hard to believe we're going to have a recession as long as the Fed is lowering rates. There is no historical precedent for that.>>>

Using those parameter, you would have been 100% Cash or 50%long/50%short in the bottom of the 1980-81 market.

--Duker
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