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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (45592)	1/14/2000 5:31:00 PM
From: MythMan	Read Replies (1) \| Respond to of 94695

>>How high can the yeild go on these things go anyway?<< we're both old enough to remember double digits.

To: yard_man who wrote (45592)	1/16/2000 7:04:00 PM
From: valueminded	Respond to of 94695

Tippet: I see two possibilities: 1. Double digits on bonds or 2. Market gets crushed (50% decline) Given AG predilection to protect the stock market at all costs(witness double digit growth in monetary aggregates) he will continue to expand the money supply. Bond holders know that monetary supply cant be continually increased in excess of the growth of the economy+inflation. Since it is being expanded, expect rates to inflate accordingly. From my vantage point, it is difficult to make the case for interest rates going down even if the market gets crushed. This is because the dollar is the defacto world currency and as such we benefit from foreigners holding our dollar. In a crash, the dollar would weaken, substantially and rates would increase in order to persuade the rest of the world to continually holding our debt. Now if the correction is long and hard enough to be termed a bear market. ie substantial wealth disappears and we end up in a global recession, I would look for the rates to go down.