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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (85940)	11/27/2000 1:49:19 PM
From: Joan Osland Graffius	Read Replies (2) \| Respond to of 132070

MB, GEMS getting a hammering today. Looks like it is coming into a buying range???? Joan

To: Knighty Tin who wrote (85940)	11/27/2000 2:59:57 PM
From: BSGrinder	Read Replies (1) \| Respond to of 132070

Michael, Could you explain why the Treasury yield curve is totally inverted? Why would anyone accept LESS interest for giving up his money for a longer time, all the way along the curve? The only reason I can come up with is if you think inflation will trend down during the life of the longer bond. Yet we are in a period of record low inflation now (thanks to the book-cooking, perhaps), so how can you expect to trend down from here? The only other thing I can think of is that the supply and demand for the various lengths is being distorted by such things as "flight to quality" and Treasury buy-backs. Thanks for any illumination your bond brain can cast on this conundrum. /Kit

To: Knighty Tin who wrote (85940)	11/27/2000 3:52:51 PM
From: TRINDY	Read Replies (3) \| Respond to of 132070

Mike, I know you are not technically oriented, but I just came upon a statistic that I thought might be of interest to you and your readers. I keep track of daily closing prices on the major averages. I noticed that last Wednesday (Nov. 22) the Nasdaq Composite hit a reading of -23.9 % below what is known as the 200 day exponential moving average (using a .01 coefficient). That is the lowest reading relative to the moving average in all of the history of the Naz. The DOW and S&P 500 had similar negative readings in the heyday of the 1987 crash. Long live nuclear winter!!!!