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To: CommanderCricket who wrote (40561)3/22/2005 2:56:59 PM
From: jim_p  Respond to of 206223
 
Can't wait for the panic selling to kick in once the market finally realizes that interest rates and inflation are going higher than the market has been predicting.

Higher interest rates, higher inflation, higher energy costs all not good for the market or the economy.

Even if the economy starts to decline faster than the fed would like, they have no choice but to continue to raise rates to try to reverse the flight of foreign capital out of the US and to continue to reduce liquidity to try to reverse the speculation out of the real estate markets before it gets out of hand. It should get interesting when the music stops!!



To: CommanderCricket who wrote (40561)3/22/2005 3:24:13 PM
From: profile_14  Read Replies (1) | Respond to of 206223
 
I hear you, but are things really that bad for the overall market? The economy is improving and so are profits and the job market. Things are moving gradually, OK. I can see the case for a steep sell off on specific sectors, but some stocks are cheap right now. Now if everyone wants to be a doom and gloomer and jump on the band wagon, there is a no saying where this will stop, but on the other hand, the market could fool most by rallying as well just as no one expects it.

It is not as if Greenspan all of a sudden told us about inflation. Everyone knows it is here, manifesting itself through real estate, oil, education, health care, groceries, you name it.

I forget who said it but the cure for high prices is high prices. It may have been jim_p. It is tough to make a call on the overall market here for the intermediate term (next 6-9 months). Perhaps it is best just to play the volatility.

Best regards,