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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (41216)	6/30/1999 4:54:00 PM
From: Haim R. Branisteanu	Respond to of 94695

Vi they will reverse because I am long <G> Haim

To: Real Man who wrote (41216)	6/30/1999 5:14:00 PM
From: GROUND ZERO™	Read Replies (3) \| Respond to of 94695

Vi, That's a wonderful question, and here's why for several reasons: You just said it... the bonds topped out when AG eased, they bottomed when he raised..... what we have here is a classic example of how the markets anticipate fundamental changes... by the time AG lowered rates, it was already factored into the market... it had no other place to go but lower..... now, we have the reverse, AG's up tick in rates signals, to me anyhow, that the bonds have very probably bottomed..... Also, look at what happened today through the eyes of bond investors, step inside their heads... the bond investors are pleased that AG raised rates today, because this is a pre-emptive strike against inflation, the greatest enemy of bond holders, and all long term equity investors for that matter..... the rate hike today is preferable rather than a series of bigger hikes down the road after inflation takes real hold and puts it's death grip on these markets..... the rate hike today is bullish for all the markets, which is why they rallied with very good breadth..... GZ