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To: Ted David who wrote (62073)	6/13/1999 9:20:00 AM
From: Glenn D. Rudolph	Respond to of 164684

And as for equities, my point is that they had overdone a sell off and had also priced in well more than a 25bp move. Thus, if all we get is a 25bp move.. conceivably we could get some sort of relief rally. It has happened before any number of times.. and this has been said over and over on our air by many portfolio mgrs and others. Ted, This is true. Sometimes the market swings too much and I suspect that has occurred on the downside. I believe 50 basis points is already factored in. A 25 basis point increase would cause a rally in my opinion. Glenn

To: Ted David who wrote (62073)	6/13/1999 4:47:00 PM
From: GST	Read Replies (1) \| Respond to of 164684

Hey Ted -- sorry about the 'stupid' remark. It was uncalled for. But on the question of what is or is not priced into the market, many of your viewers listen to the people you interview and take what they say as gospel. I do not think it appropriate for you to push those you are interviewing to agree with what appeared to be your conclusion -- that higher rates are priced into the equity markets. Markets are complex, and do not behave in simplistic linear fashion especially when they are being driven from one dynamic regime -- falling rates -- to another dynamic -- rising rates. At this point a Fed increase may be in the market, but not a tightening trend. This change in trend, if there is one, would argue for at least a 20% decline in the major market, and could spell catastrophe for stocks that now cruise in the ozone layer of the atmosphere. Again, sorry for the thoughtless personal comment. You and your colleagues have done an incredible job of bringing the market into peoples' daily lives with great wit and ability. I hope you will accept my sincere apology.

To: Ted David who wrote (62073)	6/13/1999 10:01:00 PM
From: Mike M	Read Replies (1) \| Respond to of 164684

And as for equities, my point is that they had overdone a sell off and had also priced in well more than a 25bp move. Thus, if all we get is a 25bp move.. conceivably we could get some sort of relief rally... Whether a sell off is overdone or not is subject to interpretation. That the Fed is changing its bias to slow down our economy and that the bond market has already factored in a 50bp move, leaves plenty for the market mavens to speculate on. In any event, a better question is, "where to from here?". What continues to bother me is who will lead equities in a rising interest rate market. Lately that has been problematic. One day it is one sector the next day another. It is starting to look a little desperate. I don't think it can be banks, nor techs until their multiples better represent their actual growth rates. The internuts are clearly having their own problems (a case of bad helium, I think). Money will continue to search for the new mantra... Certainly we see that in the cable mania,... But, oversold, maybe in the very short term....