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


To: bobby beara who wrote (75512)4/19/2001 4:04:11 PM
From: JRI  Read Replies (1) | Respond to of 99985
 
What if the bonds are screaming INFLATION as opposed to recovery?



To: bobby beara who wrote (75512)4/19/2001 4:52:08 PM
From: Doug  Read Replies (1) | Respond to of 99985
 
b.b: The U.S economy (GDP) is propelled by 2 factors. The major one is the Consumer 75% and the rest is Corporate based on our exports. The Tech gap between the U.S and the rest of the world is narrowing not increasing. There have been no major disruptive technologies in the past 7 years. This is very evident from our trade defecit account. It has increased by leaps and bounds.

Because of this, the role of the Consumer to propel the GDP by domestic consumption has increased. The Consumer unfortunatley is already deep in debt to take on more. In addition , because of a lack of disruptive technologies we have to rely more on planned obscelesence made even worse by the absence of war.

Because of the existing high national debt level, increasing Money supply/l owering rates when there is little evidence that it has increased the GDP is inflationary and can return to haunt us.



To: bobby beara who wrote (75512)4/19/2001 4:54:01 PM
From: Wayners  Respond to of 99985
 
damn another right one. am I reading my own posts?



To: bobby beara who wrote (75512)4/19/2001 4:56:03 PM
From: Wayners  Read Replies (1) | Respond to of 99985
 
Yea the way it works is when bond yields are in an uptrend, stocks rally when bond yields fall. When bond yields are in a downtrend like they were, stocks rally when bond yields rise. Pretty neat isn't it?