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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: jim_p who wrote (17039)	10/8/2002 9:30:32 AM
From: jim_p	Read Replies (1) \| Respond to of 23153

U.S. Financial Stocks Are Sniffing Out Trouble Ahead The meltdown in U.S. financial shares suggests that a crisis looms, which will force renewed Fed easing. The S&P diversified financial services index (mostly money-center banks and broker/asset managers) has been pummeled, in a pattern that is reminiscent of the trend in the S&P bank index during the banking crisis in 1990. Then, bank stocks such as Citicorp were crushed, despite the illusion of good value. High dividend yields were a misleading valuation measure, because payouts were subsequently slashed. It wasn’t until the Fed intervened and aggressively started to ease that it was safe to bottom fish in bank shares. It may take a similar policy response to halt the downward spiral in these tech bubble financiers, and we recommend caution until such a development occurs.