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Strategies & Market Trends : The Millennium Crash -- Ignore unavailable to you. Want to Upgrade?


To: CYC who wrote (4416)8/19/1999 4:00:00 PM
From: Arik T.G.  Respond to of 5676
 
CYC,

Thanks. You pose good questions.

Bonds -
I see no inflation around. The hot economic climate of recent years hasn't produced any noticeable inflation in the producing sector. Overcapacity holds prices from rising. Services may have shown very moderate inflation, which is acceptable given the wealth effect that the equity market has created. The next slowdown of the economy will be accompanied by deflation.
L.T. bonds target IMO around 2 1/2% - 3% in 2002. During the BK itself I believe the bonds will be all over the place but will emerge as an alternative and will eventually be up.
A side note - Day trading is a non productive occupation.

Will there be any sequence?
I guess when the big one hits the whole market acts in unison, but the high flyers will be hit the most- momentum stocks with the momentum going the wrong way.
Also when investors dump their mfs, the mf favorites wil be hit the most. AOL gave a good example recently when it dropped no less %age from the top then YHOO and AMZN.

ATG