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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: James Strauss who wrote (30897)	3/15/2000 10:05:00 PM
From: IQBAL LATIF	Read Replies (2) \| Respond to of 50167

Real DOW move will come above 10160 point, I agree with you until SPH 1418 is not out or 1441 on SPM we may still be locked in the downward trend but if we break these two levels we go lot higher and imagine IBM MSFT the real two power houses of DOW remained very subdued it ws old economy with lot of buybacks at its best but to continue we need some few days action...PPI and CPI should help, it is about this concept of breaking down of interest rate relationship with corporate profits, in a low interest rate i.e 6-7% interest rate environment we should not see the impact of rising rates to slow down a very productive economy as the same as 1975-90 era where the economy was far less productive, the wage pressures were much higher and interest rate impact from 8% to 12% is absolutely different, in a benign inflation environment a low interest rate rise will not impact DOW profits in a rising inflation environment like we use to have in 75-85's the response would be very different from DOW... if we care to discount the present earnings of some of these great fliers of last night like we do for Techs and apply only 10% growth rate we will look at DOW 16000 potential, the makret needs to appreciate theearnings in hand or the bird in the hand in case of new economy we are worried about two birds in the bushes to catch them is another matter.. lets see..