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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: QuietWon who wrote (73845)	11/30/1999 8:30:00 PM
From: kendall harmon	Respond to of 120523

Padinha on inflation, from TSC <<The central bank tightened only once between March 1995 and December 1998 -- but this year it's tightened three times in five months. Money is still growing faster than it has during all but one or two of the past 12 or 13 years -- but between 2.3 and 3.5 percentage points slower that at last year's peak. The yield on the bond dropped an average 45 basis points per year between 1995 and 1998 -- but this year it is on track to add 21. Many market participants will take from "pessimistic" notes like this that shares are forecast to crash (or that the author "hates" stocks) -- and that's too bad. This column isn't about shares, but if it was, this is how I'd respond. Interest rates haven't mattered for so long now that many people honestly think they never have -- or that they never again will. They will though. Interest rates will eventually end up mattering. They always do. Think of things in terms of a teeter-totter. With interest-rate increases on one side and shares (say) on the other. Especially when they come on top of very low levels to begin with, increases (especially little, spaced-out ones) won't send the rate side of the totter slamming to the ground -- and shares soaring to their death. Eventually though, as more are added on (or as it becomes more clear that they will be), they begin to weigh. How to know beforehand when precisely the totter will tip? That's always the tough part. It's kind of like pornography -- you'll know it when you see it.>>