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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Stoctrash who wrote (37390)	3/21/2001 8:33:42 AM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

OJ and Fred.. Look at this.. Only in 'depression' we have seen this..negative.. S&P 500 Returns and Interest Rate Cuts The aftereffects of an "easing cycle," in which the Federal Reserve cuts interest rates at least three times in a short period of time, largely have been positive. The chart shows the price change in the S&P 500 index three months, six months, and 12-months after the third cut in a cycle. Date of Third Cut 3 ..... 6 .... 12 months returns..%age term 7/1921 1.2 11.9 29.4 3/1930 -10.1 -13.2 -26.8 3/1934 -7.4 -17.3 -21.7 4/1954 9.0 16.5 36.7 2/1958 5.9 15.6 32.7 8/1960 -1.8 10.0 20.0 1/1971 10.2 5.9 10.5 2/1975 12.5 7.0 26.5 7/1982 21.3 31.9 52.6 1/1988 3.7 5.0 16.5 7/1989 -2.1 -5.0 3.3 1/1996 2.9 2.2 23.6 11/1998 7.4 17.6 23.8 Average 4.1 6.8 17.5 Source: Deutsche Banc Alex.Brown Global Portfolio Strategy