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To: BGR who wrote (65890)	10/1/1999 8:50:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 86076

BGR, the earnings expectations seem a bit high for my taste...it's simply counter-intuitive to what's happening. earnings warnings seem to proliferate lately. the PPI showed massive annualized increases in raw materials and intermediate goods costs, i.e. input prices. at the same time, we hear that companies are not able to pass these on. that means margins must be under pressure. economy-wide (publicly and privately held cos.) profits already fell in Q2. in addition to that i have always held that rates are far more important than earnings to the stock market. IF the long bond were to suddenly begin to behave, i would become more sanguine with regards to the stock market's prospects. otherwise i fear it's curtains for a while.