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

To: Justa Werkenstiff who wrote (9513)	10/28/1999 9:07:00 AM
From: Xpiderman	Respond to of 15132

A.G. Edwards Chief Market strategist Al Goldman sees a robust U.S. economy and expects the Dow to end the year at a new high. And if you're ill at ease in this jittery market, he says now's the time to buy. "We think that interest rates are going to come down. We think the long-term government bond, which is now yielding about 6.3%, will be yielding in the 5.5% to 5.7% range by year end. Why? Because inflation is running at about 2%. Bond buyers classically demand a 3% real rate of return, which gives you a 5% government bond. Sounds simple, but bonds have gone up 1.5 percentage points from their lows last October, while inflation has gone up by only a third of that. We think the inflation figures are distorted anyway. If we're right and bond yields start coming down -- and we believe we are -- that is another strong argument for common stocks. It'll recreate a permissive environment for the stock market." By Eneida Guzman moneycentral.msn.com