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

To: Nancy who wrote (31940)	3/10/2002 7:17:21 PM
From: Challo Jeregy	Respond to of 52237

Wait Three Rate Hikes Before You're Out By James J. Cramer 03/08/2002 03:23 PM EST Oh boy, they are already telling you that the interest rates matter. They won't stop. They absolutely will try to get you to sell because of a mean and angry Federal Reserve. They will start telling you about the short-term rates and how they are signaling the end. To which you should say, "The end of what?" The end of nothing. We are in the sweet spot, where there is still plenty of slack, plenty of unemployment and plenty of people who can't put through price increases. It is this part of the economy that the Fed loves. It will let this period go on, with smaller increases in rates, until it sees inflation -- and there is no inflation. Here's my rule: We can go three hikes before you have to think about selling. Three hikes. If you sell before then, it must be due to fundamental deterioration of a stock, not the market's pull and competition from higher rates. Please, don't let the talking heads scare you. It will be a huge mistake. I have traded during numerous rate hike environments. At the beginning of the hikes, the media and the bears freak out. That's when the best money is made. Don't sell unless you have to. Don't sell because these people tell you "Fed hike imminent." We need hikes now. That means we are out of the woods and earnings are picking up. But we won't get them. Not yet. Too early. Stay tuned. thestreet.com