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To: UnBelievable who wrote (38802)	11/20/2000 9:18:36 AM
From: pater tenebrarum	Read Replies (1) \| Respond to of 436258

you may have noticed that all sorts of cyclicals got bought lately...they're 'cheap' and everybody's betting on a rate cut...as well as falling energy prices. imo energy prices must first lose the backwardation in the futures...as long as that persists, supplies remain tight and prices will keep going higher. the Fed mentioned it is still keeping an eye on inflation, which is imo because they know that energy price inflation reverberates throughout the economy with a lag of several months. not least because contract prices for crude get adjusted more slowly than the spot price... the choice companies have is either face a margin squeeze or raise prices. or buy faster computers and hedonically re-adjust their productivity.