Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Bonnie Bear who wrote (7423)	11/7/1997 11:57:00 PM
From: Joan Osland Graffius	Respond to of 18056

Bonnie, >>SPX 650 is a full correction to the international index, 800 is the fed's number for full value IF the earnings projections are correct. Are you talking about the SPX 800 from the appendix of the minutes of the last Fed meeting. If so we have seen a fair amount of downgrading of earnings since then. (I think the Fed used Operational Earnings.) OTOH the bond has gone down since September. On balance I suspect full value is lower than 800, but not by much. Joan

To: Bonnie Bear who wrote (7423)	11/8/1997 1:06:00 AM
From: Brad Bolen	Read Replies (1) \| Respond to of 18056

Bonnie, If I understand you correctly, why do interest rates have to go up to cause a full correction? Isn't the danger now an oversupply of stock (Asian) and product on the international markets...which bonds and gold are now telling us is deflationary? B. >>>To: +Haim R. Branisteanu (7417 ) From: +Bonnie Bear >>>>>>Friday, Nov 7 1997 11:36PM EST Reply #7423 of 7429 >>> SPX 650 is a full correction to the international index, 800 is the fed's number for full value IF the earnings projections are correct. So my guess is that it will settle in that range. We will not see a full correction until interest rates go up or a fear-based correction hits the financial sector.