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Strategies & Market Trends : Tech Stock Options

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To: Stephen who wrote (56727)10/30/1998 11:26:00 AM
From: James Strauss  Read Replies (3) of 58727
 
Stephen:

I hope we get a pullback on Monday, it would be healthy...

The major reason for the FED rate cuts was fear of bank sector liquidity problems... That hasn't changed yet... Many banks seemed to be in the hole with bad international debt receivables that was becoming worthless... Exotic leveraged investments were going against some of these financial institutions to the tune of Billions of Dollars... Until this turns around the FED will continue easing... As long as the FED is in an accommodative stance the markets will go up because investment returns will be higher than fixed income returns...

Jim
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