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

To: John Pitera who wrote (6072)	5/9/2002 6:59:27 AM
From: John Pitera	Read Replies (1) \| Respond to of 33421

President Bush has just nominated 2 very prominent economists to fill the vacant seats on the Fed Board. Donald Kohn, a senior advisor at the Fed, and Ben Bernanke, chairman of the Princeton University Economic Dept, are extremely well informed of policy mechanics and are talented economics rather than coming from a commercial banking background as the most recently inducted Fed govs Olson and Bies are. Kohn currently serves as an advisor to Greenspan after directing the Board's division of monetary affairs for 14 years. In addition to duties at Princeton, Bernanke serves as the Monetary Economics director at the NBER (National Bureau of Economic Research). *Bernanke meets regularly with the NY Fed president (the FOMC vice chair)* to advise on economic and policy issues. Great selections as neither will have any trouble clearing through Senate confirmation.

To: John Pitera who wrote (6072)	5/9/2002 7:04:53 AM
From: John Pitera	Respond to of 33421

South Korea raised Rates 25 basis points on Monday and the Reserve Bank of Australia (RBA) raised interest rates by 25 bp to 4.5% on Tuesday , They cited strong household spending and a recovery in business investment. Rate differentials have finally begun to offer some more credible direction for the foreign exchange market, particularly when considering some of the lingering skepticism surrounding the ability of the US productivity surge to manifest into sustainable corporate profit growth. AUD short rates are now 275 basis points higher than the Fed Funds target. EveryDay you are long the AUD against the USD you are getting that interest rate differential paid to you.

To: John Pitera who wrote (6072)	5/9/2002 9:00:50 AM
From: Terry Whitman	Read Replies (3) \| Respond to of 33421

I believe the pieces have been assembled here for a nice spring rally. The market has tired of selling- a great deal of capitulation has occurred. The dollar has corrected, and interest rates have fallen. Combine these factors with increasing productivity, and you have the makings of future corporate earnings growth. All the market needs now to take off is increasing confidence. The transports held up real well in the recent big cap downturn, and the A/D line is still near new highs. Comparing, the transports are leading the industrials, which are leading the SPX: quote.yahoo.com My read is that phase 2 of the cyclical bull is probably starting here. At the start of phase 2, the A/D line may work temporarily lower, as large caps (OEX) should see some inflows from smaller caps. The new highs will probably peak out eventually here too. How is the IPO and secondary offering market going? It should be getting back to about normal levels here soon, if it follows past phase 2 patterns. The media should start to become more positive, as the public transforms from disbelief to belief.. Regards, TW