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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (16026)	6/27/1999 12:21:00 PM
From: James Strauss	Read Replies (1) \| Respond to of 29382

Sergio: I hope you're right about the FED's hands being tied, forcing them to change to a neutral bias... Looking at the other side of the coin, a change to a neutral bias would move the market to new highs... A market at new highs means expansion of the "Wealth Effect"... People will spend more if the value of their investments is rising... More spending here in the U.S. along with a recovery overseas could add to inflationary pressures... I don't think Alan Greenspan wants to let the inflation Genie out of the bottle... Keeping the FED rate bias unchanged with a modest 1/4 point increase should keep the market and inflation in check for at least another qtr... Jim