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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: NucTrader who wrote (53939)	6/13/2000 8:20:00 PM
From: The Ox	Respond to of 99985

Well thought out, well written article! Thanks for the link Nuc. I think you can just scroll down to the section titled bottom line and you will get your summation. Basically he's stating that there is a direct ratio between the unemployment and inflation targets set by the FED which are effected by GDP. These targets will determine where the FED sets the funds rate based upon their models for either fighting inflation or fighting tight labor markets, or both. At least that's the way I read it. Michael

To: NucTrader who wrote (53939)	6/13/2000 9:10:00 PM
From: HairBall	Read Replies (2) \| Respond to of 99985

NucTrader: I just scanned to article, but it does not take a full paragraph to sum it up. Basically he is a new era parrot...he believes that stock PE's have rising dramatically to compensate for the new era productivity. However, once that transition has been made from the old era acceptable growth rate of 2.5% to the new era growth rate of 3.5%, "the cyclical trade-off between unemployment and inflation would once again hold". In spite of his new era thinking he has now come to the conclusion that..."The time has come to strategically sell high P/E stocks into high quality bonds!" Well, that is my at a glance take anyway...<ggg> Regards, LG