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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: marc ultra who wrote (6416)	6/30/1999 2:51:00 PM
From: MrGreenJeans	Respond to of 15132

Federal Reserve Move This is an interesting move removing the bias that is. Markets will hit new highs any day now...the way things are moving now maybe all 3 indexes hit new highs today on a closing basis. Removing the bias absent any immediate crisis or bad economic news means the financial markets go one way UP. Summer rally here we come. My first reaction is that the Federal Reserve may have to increase rates at least one or two more times because if they want to decrease the rate of economic growth and the growth is fueled in part by higher equity prices, the wealth effect (for those that believe), and equity prices are moving higher because of the removal of the bias...the Fed may look back on this announcement and see it as a mistake later in the year. In any event, break out the portfolios and adjust them UP until further notice. "Honey, tonight we are not having tuna fish...take out the chicken!"