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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (5631)	2/20/2002 2:47:15 PM
From: John Pitera	Respond to of 33421

Hi Hawk, a great post. I agree with Ed Yardeni, that the market is only able to focus on one or two things at a time. When we see some of the very easy year over year earnings numbers in Q 2 and Q 3 that will help stocks out. China cut their interest rates today for the first time in 2 and a half years. 10-year: +1/32..4.865%....GNMAs: -2/32....$-¥: 133.79....Euro-$: 0.8722 In a bid to boost consumption, China cut interest rates for the first time in two-and-a-half years. The problem however, is that China is still a nation of savers. In fact, the savings rate rose 12.6% year on year in January after a record 15% surge in 2001. Remember, Chinese consumption seems to be better correlated with exports. While China's exports have been fairly resilient, markedly outperforming their Asian peers, they have still suffered from the global economic slowdown. However, continued restructuring will foster the development of new export industries, a dynamic that will encourage savers to take advantage of the capital returns from equity investments. Not surprisingly, the benefits of this efficient allocation of resources should eventually filter through to consumption.