Labman Look at this magic post..<<The bond yields will soon head south as techs and broad market makes a lethal move in a forward direction..>> Iqbal Latif to +MARK C. (25546 ) From: +IQBAL LATIF
Thursday, Apr 22 1999, 12:18AM ET Reply # of 25679
And markets did exactly that 10 hours later, this is forecasting from fundmentals, we at Idea are better to analyse and decide hours earlier..
<<New York, April 22 (Bloomberg)Top Financial News
Thu, 22 Apr 1999, 8:41pm EDT
-- U.S. bonds posted their
worst loss in more than seven weeks as a stock market rally
reduced demand for less-risky Treasury debt.
''The bond market's taking its cue from the stock market,''
said Scott Grannis, who helps manage about $50 billion at Western
Asset Management in Pasadena, California. Grannis said the gains
in stocks are another reflection of the economy's strength,
though he sees growth slowing in the months ahead.
+MARK C. (25546 )
From: +IQBAL LATIF
Thursday, Apr 22 1999 12:18AM ET
Reply # of 25679
The movement of big caps sometime is a mistakenly identitfied as rising inflationary
expectations, when TECHS started correcting we saw rotation into big caps, however
the market assumed this as signal that cyclicals are coming back in favor and as such
treated this move as a internmediate step leading to higher intrerest rates, as you know
we got this rally in DOW going as strong economy resulted in strong corporate profits,
but it is also considered as down the road a recipe for higher Fed rats, but underlying
yawning gap between capacity and out put indicates ( the most important yardstick one
should have in face of breadown of Phillip curve) that we may have this non-inflationary
new paradigm economy going until the output growth exceeds capacity growth, we have
this 6 months margin, in them.
Meanwhile, Fed worrried about 'asset inflation' in internets must have seen that 'asset
bubble' (where gallons of ink has been spilled on out come for US economy if internets
corrects) had a shrp haircut without any impact on the market, we still stayed above
10250 on DOW abd above 1300 on SPM. The bond yields will soon head south as
techs and broad market makes a lethal move in a forward direction.. |
