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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (14856)	6/27/2000 4:09:00 PM
From: Justa Werkenstiff	Respond to of 15132

Fed chief eyes higher speed limit for growth-report NEW YORK, June 22 (Reuters) - Federal Reserve Chairman Alan Greenspan has warmed to the idea the economy can safely grow between 4 and 4.5 percent per year, Fed insiders said according to an article in Business Week. Greenspan, long skeptical about the concept of the New Economy and reluctant to endorse any specific growth targets, is now more, "sympathetic to the notions that the economy's sustainable cruising speed has increased again," an article in the magazine's July 3 edition said. Even some Fed inflationary hawks like Alfred Broaddus, president of the Federal Reserve Bank of Richmond, have come around to the belief that increased rates of productivity are pushing up the economy's speed limit. Just six months ago, the Fed felt the limit was at 3.5 percent. Now that limit has been raised and is seen closer to 4 to 4.5 percent, just shy of the economy's 5.4 percent annualized growth rate in the first quarter of 2000. Business Week said the Fed is encouraged by the way businesses are using technology in new ways to cut costs, including growing use of the Internet for business-to-business transactions. But not all Fed members are convinced the economy has permanently shifted up a gear. Fed Governor Laurence Meyer puts the economy's speed limit at about 3.75 percent, arguing that because of low unemployment, the economy still needs to cool, Business Week reported. For nearly a year, the Fed has repeatedly raised interest rates to help slow robust growth and now a string of softer statistics suggest that medicine is taking effect. All of Wall Street's primary dealers, the institutions that deal directly with the Fed in the money market, expect the 6.50 percent federal funds rate to kept steady at next week's meeting. 18:46 06-22-00

To: Justa Werkenstiff who wrote (14856)	6/27/2000 5:15:00 PM
From: rsie	Read Replies (1) \| Respond to of 15132

"Rich: I would have to know your age and financial objectives. It is a personal decision. I am playing defense because of my outlook and my decision to preserve capital." I am a 46 year old with an outlook to also preserve capital....looking at the bear markets of old, sure understand why bob does not want to go thru that again....I like your 40%bonds/60%cash portfolio.....what if 50% of your bond holdings are GNMA's(VFIIX) and the other 50% is the intermediate term treasury fund(VFITX)? "Within that cash position is no more than a 10% trading position at any one time. " sounds very rational....thanks for your opinion....very grateful....Rich