Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: stock bull who wrote (134300)	6/24/1999 1:40:00 PM
From: Tommy Dorsey	Read Replies (1) \| Respond to of 176387

You're right on it Stock Bull. Tom

To: stock bull who wrote (134300)	6/24/1999 1:50:00 PM
From: Mohan Marette	Read Replies (2) \| Respond to of 176387

<-OT->Stock bull,your concern sir, is unwarranted according to Abby and the other guy from Merrill, I assume they know a thing on two about these things unless of course you want to dismiss them as nincompoophs with no credibility.I can not vouch for that Steinberg guy though.<g> ========================= Both Cohen and Steinberg also said the recent slump in U.S. government bond prices indicated that market had already priced in two or more potential rate hikes. ''There has already been a de facto tightening in the intermediate and long bond yields in the United States,'' Cohen said. ''They are already up 125 basis points. Bruce pointed out...that's the equivalent of two or more rate increases on the part of the Fed.''

To: stock bull who wrote (134300)	6/24/1999 1:59:00 PM
From: Alohal	Read Replies (3) \| Respond to of 176387

Good Morning Stock Bull: Here are some comments from AJC re interest rates: Regards and aloha Cohen calm about rate rise Abby Joseph Cohen says rate hike won't cause major market damage June 24, 1999: 1:28 p.m. ET NEW YORK (Reuters) - Wall Street seer Abby Joseph Cohen said Thursday a hike in interest rates might cause temporary pain, but such a move by the U.S. Federal Reserve would not cause major damage to markets. "I don't expect any significant impact on the market, but we could see some transitory discomfort," Cohen, chief U.S. market strategist at Goldman Sachs Group Inc., told a Council on Foreign Relations meeting in New York, reiterating comments she made last week. "I would characterize a Fed tightening as a flu shot. ... I think there could be some temporary discomfort until we all recognize that it really was a good idea," said Cohen, a renowned stock market bull. The Federal Reserve's policy-setting group is meeting June 29 and 30 and is widely expected to raise short-term U.S. interest rates by a quarter of a percentage point to keep a rein on a rapidly growing U.S. economy. The stock and bond markets' recent fears about runaway U.S. inflation was unwarranted and there was scant evidence that wages were rising too quickly, Cohen said. Bruce Steinberg, chief economist at Merrill Lynch and Co. Inc., who joined Cohen in speaking to the council, added the risk was that the Fed would become too aggressive and keep raising rates, which could hurt U.S. profits. "The question is if this is the first of many tightenings to come," Steinberg said. Equity markets were caught in a trading range, partly because of investor uncertainty over whether the Fed's actions would help or hinder the prolonged U.S. economic boom over time, Cohen said, adding that the Standard & Poor's 500 index has been stuck between 1300 and 1350 since February. Pricing in the hike Both Cohen and Steinberg also said the recent slump in U.S. government bond prices indicated the market already had priced in two or more potential rate hikes. "There has already been a de facto tightening in the intermediate and long bond yields in the United States," Cohen said. "They are already up 125 basis points. Bruce pointed out. ... That's the equivalent of two or more rate increases on the part of the Fed." The rapid growth in electronic commerce likely will be a potent force in keeping inflation at bay, as it pushes prices of goods and services lower, the economists said. "The Internet is a powerfully deflationary force in the world economy," Steinberg said. "It's going to make prices come down." While the U.S. Fed was poised to raise interest rates, Cohen and Steinberg noted growth was slower outside the United States and overseas central banks were lowering rates in efforts to spur economies. "This has been a very sluggish global economy," Cohen said. "Japan, the world's second largest economy, is still in the midst of a domestic recession and Europe is still a mixed picture. ... We are no longer on the precipice of something quite dangerous, but we are in a period of slow growth in the rest of the world." Last year's economic turmoil that began in emerging markets in Asia and Russia, then spread, damaged profits at U.S. financial institutions that lent to and did business in those regions, while it also hurt U.S. multinational companies that sold goods there.