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Strategies & Market Trends : Tech Stock Options

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To: donald sew who wrote (55864)10/20/1998 12:11:00 PM
From: PnclNk  Read Replies (1) of 58727
 
Don,

<<If earnings continue to decline when the FEDs stop decreasing rates, and we are at historical high S&P P/E levels, or higher - unfortunately I see disaster, not just a pullback. Any comments.>>

Let's see here . . .Extrapolating the current rate of changes happening, the Fed can continue with .25% rate cuts at two per month for about 10 more months before they reach 0%. If the Dow goes up about 1000 pts. per rate cut we will be at Dow 30000 before we really have to begin to worry again about a plunge! So - - no worries until Aug. 1999. Relax. Any more questions?

Pencil Neck
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