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Strategies & Market Trends : YEEHAW CANDIDATES -- Ignore unavailable to you. Want to Upgrade?

To: JoeinIowa who wrote (4459)	1/31/2004 12:42:06 PM
From: PuddleGlum	Read Replies (1) \| Respond to of 23958

RTI has steadily underperformed its competitors, so let's dump it to make room for something better.

To: JoeinIowa who wrote (4459)	2/1/2004 11:01:02 PM
From: LAWRENCE C.	Respond to of 23958

IMHO, increasing budget deficits and US trade deficits are a time bomb. US government borrowing puts upward pressure on US interest rates (mortgages). Housing and auto sectors are vulnerable to increased interest rates. When interest rates increase, it will slow the rate of refinancings. Housing prices have inflated faster than overall inflation. An increase in mortgage rates will slow increases in home prices as it drives up the income needed to buy a house and the monthly payments needed to buy a house. If new construction becomes available faster than individuals markets can absorb it, there could even be declines in housing prices in some areas. If interest rates rise sharply this could get ugly. Recent owners could have mortgages for more than the market value of their homes. Auto sales are also interest rate sensitive. Many companies and a lot of consumers are burdened with a lot of debt. This makes the banking sector vulnerable if bankrupties start increasing when interest rates start climbing. Good balance sheets will be even more important as interest rates climb. Lawrence