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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Lucretius who wrote (35695)12/22/1999 12:58:00 AM
From: Zardoz  Read Replies (2) | Respond to of 99985
 
you mean like when bonds have fallen for over a year and yet the stock indexes have melted up? like 1999? -g-
its just a process of reaching extremes and then rebalancing... 1987 unwound the same way


You try to paint a bleak picture, when none exists. You see the one side of the equation and assume that the bonds are signalling higher inflation. Yet the bubble of the Asian crisis can result in higher treasury yields for this time frame. And that's without higher inflation on the scene. And as usch the rebalancing that you expect may be a lower 2ooo 30 year bond yields. In 1987 it was dracontine economic policies which resulted in a divergence of monetary policies, and economic growth. During the crash it was clear that policies had failed. This resulted in the appointment of Alan Greenspan to the Federal Reserve Board chair in 1987.

Hutch



To: Lucretius who wrote (35695)12/22/1999 1:08:00 PM
From: Paxb2u  Read Replies (1) | Respond to of 99985
 
LT,

Yea, thats what I mean. I couldn't figure that out until HB indicated that the FED was flooding the market with liquidity. I guess they overwhelmed the interest rate hikes with loose money. Thanks for your reply,

Peter :o)