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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: 100cfm who wrote (44707)	7/19/2001 3:45:09 PM
From: techreports	Respond to of 54805

No kidding, AG was out to kill the market. He raised aggressively because the stock market showed no signs of his hikes and the economy continued to roar, so he just kept raising. Obviously, it didn't help to have oil prices go from 12 dollars a barrel to over 30. Energy prices also went up.. Will 2002 see improvements and GDP growth of say 2 or 3.5%? Will CapEx/IT spending begin to recover? I'm not an economist, but interests have been lowered by a good amount, energy prices are coming down right now, and a tax cut was passed. Three very positive things.. I didn't expect to see a bounce in the 2nd quarter. It takes 12 months for rate hikes to effect the economy and AG's last hike didn't hit the economy till the summer of 2001. In the 4th quarter, we could see some companies spend more on IT, b/c if they don't the IT guys will lose that chance to spend the money given to them during 2001. If AG wasn't the reason the economy went from 5% GDP growth to like 1%, then why did it happen? There has to be a reason..I think the decline in the stock market is a self fulfilling prophesy. Of course, i think AG might have caused the mega-bull run late 1999 and early 2000. AG was scared of the Y2K bug, so he pumped the economy with money..