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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: DownSouth who wrote (19039)	2/29/2000 1:33:00 PM
From: chaz	Respond to of 54805

I must apologize to the entire thread for introducing this topic when I posted about my lunch with the National Sales Tax advocates the other day. Lindy is right...our personal political views have no bearing on what we're doing here as investors, so I suggest the comments be dropped or taken where there's an interested audience. Thucydidies

To: DownSouth who wrote (19039)	2/29/2000 1:56:00 PM
From: FatSam	Respond to of 54805

The link below is to the latest Humphrey-Hawkins testimony. The portion alluded to is in the three or so paragraphs before the "Technology Conditions . . ." section toward the middle of the report. federalreserve.gov

To: DownSouth who wrote (19039)	2/29/2000 2:34:00 PM
From: freeus	Respond to of 54805

reAG 's words I'm VERY happy that he was incorrectly quoted: it was an alarming concept. Guess I can be bullish again (my usual view of the current market.) Freeus

To: DownSouth who wrote (19039)	2/29/2000 3:36:00 PM
From: freeus	Read Replies (3) \| Respond to of 54805

Here's the exact section from Greenspan's speech: Thanks for the link given me here. Not hard to interpret it as the reporters reported. What is your interpretation? "As would be expected, imbalances between supply and potential supply in markets for goods and services are being mirrored in the financial markets by an excess in the demand for funds. As a consequence, market interest rates are already moving in the direction of containing the excess of demand in financial markets and therefore in product markets as well. For example, BBB corporate bond rates adjusted for inflation expectations have risen by more than 1 percentage point during the past two years. However, to date, rising business earnings expectations and declining compensation for risk have more than offset the effects of this increase, propelling equity prices and the wealth effect higher. Should this process continue, however, with the assistance of a monetary policy vigilant against emerging macroeconomic imbalances, real long-term rates will at some point be high enough to finally balance demand with supply at the economy's potential in both the financial and product markets. Other things equal, this condition will involve equity discount factors high enough to bring the rise in asset values into line with that of household incomes, thereby stemming the impetus to consumption relative to income that has come from rising wealth. This does not necessarily imply a decline in asset values--although that, of course, can happen at any time for any number of reasons--but rather that these values will increase no faster than household incomes. Freeus