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


To: Hank Stamper who wrote (55192)6/25/2000 2:12:00 PM
From: James Strauss  Read Replies (1) | Respond to of 99985
 
What about them earnings? Wouldn't it be reasonable to expect Fed tightening would impact negatively on corporate profits? We have only just begun to see the impact and it should take months (a year or more) to shake out....

Good point David...

What will happen is a series of revised earnings estimates to the downside where necessary... The FED will begin cutting interest rates to help balance out that soft landing scenario... The market will focus on the revised estimates... With an environment of increasing productivity we should see the market continue higher as investors look out to the next six to nine months for a recovery...

Jim