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Technology Stocks : INTEL TRADER

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To: Chris who wrote (4587)11/10/1998 9:11:00 AM
From: Gersh Avery  Read Replies (1) of 11051
 
OK Chris ..

Here's a thought. AG & co. cut interest because of concern about bonds. The cash didn't go into bonds but instead went into stocks. Now that there is talk about that maybe AG & co won't cut where is the cash going to? bonds.

If AG & co. want bonds to go up, short term what would be the best action for them to take to get them to move? No cut .. or even nastier .. rate increase.

Of course they wouldn't raise the rates. At this time a rate cut is built into the market. If AG & co. drop the rates by .25% then it will be sell the news time. I think that to keep the stock market even would require ~.5% cut. Not likely .. bonds go up .. stocks go down (some) just for a day or two.

If there is enough rumor of no cuts before the FOMC meeting then the damage will be limited and the 401k money will keep rolling in. The way to tell this will be how much the market pulls back before the FOMC party.

My $.02 (and worth every penny ggg)

Gersh
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