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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Dave who wrote (75458)	8/22/2001 9:51:38 PM
From: Rarebird	Read Replies (1) \| Respond to of 116758

Well, with the economy slowing, the Federal Reserve has already begun to loosen credit, and interest rates have started to fall precipitously. This gives stocks additional value as the competition from yields on cash equivalents falls. But when rates start to decline, that acts as a catalyst in generating buying power because cash coupled with lower rates is not as attractive as cash coupled with higher rates. Moreover, the sharp drop in interest rates will usually stimulate the economy six to twelve months down the road. The stock market is a transcendental discounting mechanism, always looking ahead. So the current profit scene is not nearly as important as that anticipated. If the sharp drop in interest rates does not stimulate the economy by the end of the year, you will not only see much lower equity prices but a much higher POG.