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To: George Gotch who wrote (48262)	9/14/1999 4:40:00 PM
From: Tony Wang	Read Replies (1) \| Respond to of 53903

Excuse me. Fed has been raising rates. But the stock market is up 600 Dow pts. from the level (10,450) of the first interest rate hike back in June. As for inflation, have you not read last Friday's PPI of minus .1 (core), or the previous employment report which showed hourly rising wages up only .2? Down from up .5 the two consecutive months prior? FYI, when the FEd tightens, to the contrary of prevailing belief, it is good for the markets. Remember in 1994 the Fed raised interest rates 6 times, from Fed Funds 3 3/4 to 6 1/4 by Feb. of 1995. After that, the Dow Jones and Nasdaq made new highs; equities were up over 27% thaat year! When the Fed is vigilant and erase inflation from the economic map, the value of the dollar goes up. Dollar denominated assets also go up. That is why in the last 3 years, there were little inflation, and the market was able to rise and to sustain the gains. So why are you LOL?