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

To: American Spirit who wrote (79970)	7/11/2001 11:59:47 AM
From: William Hunt	Respond to of 99985

American ---This morning on CNBC a bond guru was talking to Kathleen Hayes about bonds being a good investment at this time . He thinks bond rates are going lower by the way . Most interesting was the market allocation per his data of where the money is at present : 5 trillion ---short term bond investments ( INCLUDES MONEY MARKET ) 2 trillion long term bond investments 5 trillion---equity investments 3.5 trillion mutual funds The main issue at present in the economy is pschology ---both the consumer which I am worried about but more the important the mental status of the CEO making the business decisions on capital spending . This is where we have to see a change for the economy to pick up . By the way in the latest reporting period the FED is cutting back on liquidity growth to 5% from 10% . You can cut interest rates to zero but unless liquidity is allowed to grow the economy will not start growing again . A prime example is that mortgae rates are higher now than they were four months ago . Their is enough cash on the sidelines to make the market turn but investors have to believed and I still think the FED has a lot more work to do or this will drag on a lot longer BEST WISHES BILL