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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Terry Whitman who wrote (24662)	11/23/2001 2:28:33 PM
From: isopatch	Read Replies (1) \| Respond to of 52237

Terry. Definitely a move up in Tsy yields here based on: 1. ST snap back in economic stats from the immediate post 9/11 plunge. 2. And the fear $$$ that piled into Treasuries after 9/11 now exits on major success in the Afghan chapter of the War on Terrorism. But LT, the article you referenced provides further evidence confirming the primary trend as deflationary. <On Nov. 1, the Bureau of Economic Analysis at the Department of Commerce released third-quarter personal consumption expenditure data — a more sophisticated version of the consumer price index — and for the first time since 1954, it fell…0.4% on an annualized basis. Prices actually went down. Then last Thursday, the Bureau of Labor Statistics at the Department of Labor released October import prices — down 2.4%. Then last Friday, the same folks released the October producer price index — down 1.6%, the largest drop in history.> I'd use this bump up in yields to establish, or add to, positions in medium grade fixed income securities. Plenty of BBB- to A+ S&P rated bonds and preferreds in the 8 to 8 3/4% yield range. I'm a little too conservative to play with junk. But those with the risk profile are playing there also. Cheers, Isopatch