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To: Ron McKinnon who wrote (22042)2/4/2000 6:26:00 AM
From: Larry S.  Respond to of 53068
 
Greenie vs Bonds: -
what a dichotomy! Greenspan is ratcheting up short term rates to temper inflationary pressures while the Treasury announces that it will reduce the supply of future Treasury bonds, particularly long bonds. As 30-year bond mature, they will not be replaced by new issues as they have in the past. Result? - panic in the bond market, panic to buy. Buying creates demand, supply is indicated lower. Voila - long rates came crashing while short terms are shooting up.
Add to this recipe the indicated booming Government budget surplus, with a shrinking of the public debt, and we have an economic scenario that made Nirvana look wicked.
TEchnology knows no limit, the net is changing the world, streamlining the cost of doing for business for those in the know and wiping out those who aren't. Internet Darwinism.
Ron, in line with your postings, this change in the interest rate scenario bodes HUGER for the financials. While they are still laggard, i am suspecting a BOOM in this sector rivalling what we saw in Oils last year. Think Health heading the same direction. and maybe, some day airlines, ggg. larry



To: Ron McKinnon who wrote (22042)2/4/2000 12:16:00 PM
From: pat halm  Read Replies (1) | Respond to of 53068
 
Hi,do you know why CNC is making such a big move?thanks and good luck on your picks .