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To: alias who wrote (62186)1/13/2000 10:16:00 PM
From: TARADO96  Read Replies (1) | Respond to of 152472
 
I am not an economist, but my view of the market is this: as long as the market perceives that the G man is vigilant and in control of the inflation, the indexes can and will go higher.

However, if the market perceives that the feds are behind the curve, and then inflation significantly trends up, then we are in trouble.

That is the reason that the market tolerates a 6.7 yield. The bar has risen before investors switch to other assets. I heard a bond trader say a few days ago, that even at a yield of 7.5, investors will keep on pouring money in stocks, for the simple reason that they could get ROI in 30 or fewer days.

We will be ok, for now.

John