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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (51439)	7/8/2004 9:53:28 AM
From: AC Flyer	Read Replies (3) \| Respond to of 74559

>>in the coming interest rate up, down and then WTFU ("way the fcuk up")?<< Once again, I must respectfully disagree. US interest rates will move up only moderately for the rest of this decade. There will be no double-digit discount rate as there will be no large jump in inflation during this period. The forces that have held inflation in check for the last five years - globalization and high productivity - will continue to prevail through the end of this decade. It is interesting to note that the same demographic force that will power the demand side of the US economy through 2010 will also drive historically high productivity on the supply side. The average age of the US workforce will increase through 2010. Older workers, with greater experience and skills, generate higher rates of productivity than younger workers so we should expect to see the current high levels of productivity maintained. So, the bond market and Uncle Al will likely work in concert to move interest rates up at a glacial pace. The US stock markets will trade sideways to up through the fall and will then generate very powerful gains in 2005.