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To: Les H who wrote (53769)	6/12/2000 4:02:00 PM
From: Haim R. Branisteanu	Respond to of 99985

Les, the guru was right but he forgot to mention it will be the energy group.<GGGGGGGGGG> Haim

To: Les H who wrote (53769)	6/12/2000 4:02:00 PM
From: HairBall	Read Replies (2) \| Respond to of 99985

Les Horowitz: Which guru was that? Regards, LG

To: Les H who wrote (53769)	6/12/2000 4:09:00 PM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 99985

....and then my goodness, if Ralphy had weighed in as well..... by the way...how many does it take to make a quorum at a chucklehyser round table forum.... ....oh and before I forget, whenever marty zweig frowns during his answer, take it as a bearish signal.... J

To: Les H who wrote (53769)	6/12/2000 4:46:00 PM
From: Tunica Albuginea	Read Replies (3) \| Respond to of 99985

" There is no evidence of inflation " Message #53769 from Les Horowitz at Jun 12, 2000 3:59 PM ET It a good thing one of the cycle gurus called today a monster up move or we be in a mess of trouble. TA ========================================================= There is no evidence of inflation cbs.marketwatch.com By Joseph V. Battipaglia, CBS.MarketWatch.com Last Update: 1:34 PM ET Jun 12, 2000 NewsWatch Latest headlines NEW YORK (CBS.MW) -- Last week, Federal Reserve governors Parry, Gunn and Meyer expressed their view that early signs of moderation may not be enough to confirm that the economy has entered a period of slower growth. Maintaining an ever-vigilant posture, the governors continued to express concern about the threat of possible inflation. Expect the board of governors to publicly express concern while they quietly choose to ease off the monetary tiller. As I have said before, there remains no credible evidence an inflation problem exists and recent data on price levels continues to support this. The May PPI was unchanged with the core rate up a scant 0.2 percent. It does not surprise me, however, that the board of governors is not in a self-congratulatory mood. After all, it is the charter of the group to concern itself principally with attaining price stability through the appropriate application of monetary policy. For the foreseeable future, then, expect the board of governors to publicly express concern while they quietly choose to ease off the monetary tiller. Remember, the Federal Reserve seldom waives a flag signaling the end of a period of credit tightening, they simply demonstrate this through the policy choices they make. Welcome to the Goldilocks economy Some years back, the term "Goldilocks economy" was used to describe a level of growth considered to neither "too hot" nor "too cold." I believe we are entering into another such period as annualized GDP growth moves toward a 4 percent annual rate of growth away from the 7.4 percent rate of growth seen during last year?s fourth quarter. At the same time, I expect the core rate of inflation to remain between 2 percent and 3 percent per annum. In this environment, financial assets -- particularly equities -- should perform. Rising productivity and unit volume growth will remain the key formula for earnings growth. The bond and equity markets have not lost sight of these favorable conditions. The yield on ten-year Treasurys has drifted down from over 6.5 percent to 6.2 percent in less than a month and the broad market, represented by the Wilshire 5000 index, has advanced 10 percent from its recent intra-day low on May 24. The Nasdaq composite also is righting itself from its correction -- returning close to 20 percent from the same starting point. I continue to forecast 15 percent year-over-year growth in earnings from S&P 500 companies with 30 percent or more growth in earnings from the technology sector and the Nasdaq composite where robust demand from business and consumers continues unabated. As I said before, it is this earnings power that will drive equity prices to new highs as the year progresses. My year-end forecasts for the major indices remain 12,500 on the Dow Jones Industrial Average, 1,625 on the S&P 500 and 5,500 on the Nasdaq composite. My asset and sector allocations also remain unchanged