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Non-Tech : Invest / LTD

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To: NucTrader who wrote (7027)1/30/1999 12:50:00 PM
From: Lucretius  Read Replies (1) of 14427
 
I could be overlooking something in my speculation of events that will cause the turning point:

imagine the panic if the Fed raises interest rates on Tues (or maybe if they just do nothing as expected?). The strong GDP numbers certainly show no sign of a slowdown and the capital markets are definitely functioning (that's an understatement).

perhaps Easy Al gets voted down by the board and rates get hiked a qtr point. Or perhaps the mkts need ever increasing credit to continue higher and if rates are not lowered again we start seeing selling as the mkt realizes the Fed will not continue to pump the mkts. Perhaps that was the reasn for the selling we had early on Fri morning after the strong GDP numbers were released... ie- the GDP numbers assured that there would be no easing on Tues.
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