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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: westpacific who wrote (76934)	1/2/2007 10:17:59 AM
From: SouthFloridaGuy	Read Replies (2) \| Respond to of 110194

It's dependent on interest rates and inflation all of which look stable for now. At current or lower rates you would get: Parabolic equity market and soft-landing in the real estate market If rates go higher, the evidence of it doing so will creep up in the spring so a May contraction is possible. Depending on the scope of rate increases, the market could continue to appreciate, albeit at a slower pace. At 6.5% rates or higher, the Fed enters danger territory in terms of the effects on housing, equities and junk credit. Despite the dangers, given the lagged effects of monetary policy and where we stand now, 2007 is likely to be quite boring. So bulls, enjoy it while it lasts.