you're joking, right? here is some more HS
>>Greenspeak Leaves Bonds Floundering Regarding Greenspan's testimony,
Peter Canelo, U.S. investment strategist at Morgan Stanley Dean Witter,
said: "I didn't find anything I didn't expect. As far as I'm concerned,
it was a masterful job of saying very little."
As for the market's reaction, Canelo focused on fixed-income. The
long bond's move beyond its recent trading range between 4.95 percent to
5.40 percent puts the bond market "at a critical point," the strategist
said. "If we don't quickly recoup recent losses, you have to assume the
trading range in bonds has gone up and that will restrain the stock
market. The market is a little nervous here, they don't want to see
bonds fall apart."
Still, as long as bond yields remain below 6 percent they will only
"restrain" stocks, rather than auguring a big correction, Canelo said.
"I still think stocks will outperform bonds, and it's happening. My
guess is the market can make marginal new highs, but I don't think we're
going to blow away to 10,000."
Furthermore, a period where stocks and bonds "de-couple" with stocks
outperforming "is exactly what you'd expect in a period of excessive
monetary expansion," he said. "There's no way the Fed can ease because
money supply is going through the roof - they don't have to pump it up
anymore."
Despite acknowledging a bubble in asset prices exists from the
"liquidity explosion," Canelo remains bullish on stocks. He notes
equities continued to rise in 1987 even though the Fed raised rates
seven times and argues "we're now approaching moderate overvaluation"
vs. "egregious levels" reached in 1987. << |
