Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 230.92

+3.1%

Nov 24 3:59 PM EST

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To: Justa Werkenstiff who wrote (25337)	10/15/1998 10:55:00 PM
From: Wildstar	Read Replies (2) of 70976

But the Fed. is on the side of the investor. If you're long. What ever happened to the notion of a free market? Coming out with a surprise rate cut in the last hour of trading on the Thursday before options expirations (index expirations occur at the open tomorrow right?) smells of blatant manipulation to me. The Fed. is long the market and it never, ever pays to bet against the Fed. Then why did Greenspan come out with the irrational exuberance speech last year? Why was the fed leaning towards tightening earlier this year? What all the bears fail to consider in talking about the market's earnings for 1999 is the multiple expansion that will be accorded to a low inflation, slow growing economy. That is what is happening now. What is inflation? How about 1%. And soon the market will bootstrap this effect by discounting earnings expansion in the second half of 1999. This is how the market works. It is a discounter of bad and good news. The bad news is in the market. Don't believe me? Look at how the market reacted to Ralph Acampora's downgrade last Thursday. The Dow and S & P closed up. Same thing with Abbey Cohen's downward revisions. Nothing happened. The impeachment vote did nada. Government shut down? Who cared? Nobody did. Sure we will have some nasty surprises and mini corrections, but the Fed wants everyone here to provide liquidity on the long side and if you do a good job in equity selection, you will be rewarded. One question : if things are so rosey, then why did Greenspan have to step in today to "take the shorts to the cleaners?"

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