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

To: bobby beara who wrote (68630)	2/6/2001 10:55:16 AM
From: seminole	Read Replies (2) \| Respond to of 99985

Interest Rate hikes slowed the economy and decreased the present value of cash flow (earnings) from companies in the $COMPX. What has occurred in the NAZ over the last four months is the result of interest rate hikes. The effect of rate hikes took nine months to be seen in a slowing economy. Interest rates matter more than wiggles on charts, IMO.

To: bobby beara who wrote (68630)	2/6/2001 1:30:09 PM
From: jmootx	Respond to of 99985

Bobby is right The Fed raising rates in 99-00 had no impact on the NAZ. Also the 98 cuts were financial panic oriented, with the economy humming along at 3% growth. Tech stocks simply are not going to see massive capital spending for a while. With Cisco putting out a warning this month, unlike 1998, this rate cycle will benefit value plays. The economy will not see 5-8% growth like it did from the Asia crises rate cuts. My strategy is deep value long and short all no PE techs off the rallies.