Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Justa Werkenstiff who wrote (10996)	1/11/2000 4:51:00 PM
From: Boca_PETE	Read Replies (1) \| Respond to of 15132

Justa: direct hit - boing! P :-)

To: Justa Werkenstiff who wrote (10996)	1/11/2000 5:00:00 PM
From: J. M. Blackburn	Read Replies (1) \| Respond to of 15132

Justa: Excellent Job, definitely made easier by the quality of the posters here. I wish I was able to contribute more but my 80 hour work weeks, are taking their toll. I've committed to one more year and then I can spend my days doing anything that I want. Any way, I've been very busy since noon yesterday and my "Uncle" will be very happy next year. I have to tell you that lately I"ve been a half a step ahead of you concerning certain trades (Purely by chance) ONE, LU, certain drug, semi, and financial stocks. I tried for DPMI after you mentioned it but missed out by an 1/8th. What this all means, is that I'm encouraged that maybe I'm learning something about equities, after all this time. Justa goes to show ya. We must start talking more about Fixed Income portions of ones portfolio. Is it worth holding, say GNMA's if rates are headed much higher? (Not saying that they are) Are REIT's worth holding? Many questions ahead and I look forward to what this site has always delivered, Good, Information. Thanks Everyone. Jim

To: Justa Werkenstiff who wrote (10996)	1/11/2000 5:20:00 PM
From: Justa Werkenstiff	Read Replies (1) \| Respond to of 15132

Fed's Broaddus sees risk of economy overheating By Marjorie Olster RICHMOND, Jan.10 (Reuters) - The exceptional strength of U.S. domestic demand poses a growing risk of pushing the economy into overdrive and spurring inflation, Federal Reserve President of Richmond, Alfred Broaddus, said on Monday. Speaking to a group of businessmen, Broaddus said the Fed should not wait until inflation accelerates before raising interest rates but should look for early warning signs such as higher long-term interest rates and then act preemptively. ''Personally, I still believe that the principal risk in the near-term outlook is that continued exceptionally strong domestic demand for goods and services may eventually cause the economy to overheat, and I think this risk is rising,'' Broaddus told the West Richmond Business Men's Association. ''Acting preemptively means not waiting until inflation itself is clearly evident before resisting it, if other indicators, like long-term interest rates, are signalling a higher risk of inflation,'' Broaddus added. Although Broaddus said he would not talk about what the Federal Open Market Committee (FOMC) would do at its next policy setting meeting on Feb. 1-2, his comments were unlikely to dampen Wall Street expectations for an interest rate hike at that time. Broaddus is a voting member of the FOMC this year. It is ''sensible'' to expect the economy to continue to grow this year but at a slower pace than last year with continued low inflation, Broaddus said. He said he would not be surprised if gross domestic product growth slowed to 3.0 percent in 2000 from around 4.0 percent in 1999. ''While there is some risk in the outlook, as always, I believe that prospects for continued growth with low inflation in the first year of this new millennium are good,'' the Richmond Fed chief said. That slowing will likely result from the Fed's three rate increases last year, which have not had their full impact on the economy yet, as well as from an anticipated rise in labour costs, fuel and other material prices. Enumerating some of the risks he sees in the economic outlook, Broaddus warned that loans to finance speculative commercial and residential construction are rising and debt loads for many American households are sustainable only as long as the economy remains strong and employment and income remain high. Higher oil prices, which are pushing up inflation and inflation expectations, may trigger more aggressive wage demands in today's tight labour market, Broaddus said. He noted that the December employment report, released last week, showed no signs that conditions were easing in the stretched U.S. labour market. The United States has achieved price stability and inflation expectations are ''quiescent,'' Broaddus said, crediting Fed policy for helping to achieve that goal. The Fed's focus should now turn to maintaining that stability, Broaddus said. To this end, he recommended the Fed target a specific rate of inflation to guide its policy making.