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.

Strategies & Market Trends : Investing during a Bear Market -- Ignore unavailable to you. Want to Upgrade?

To: studdog who wrote (84)	11/11/1997 3:44:00 AM
From: Alfred W. Post	Respond to of 226

This is correct, BUT with it comes that the FED will have little reason to increase interest rates and that has been - at least in the past - a much more important depressant for the market. It is now much harder to find compaies which - thanks to their new product introduction - can increase their earningss and by this also the price of their stock. It might not be the overall market that goes up, but those darlings will continue. Just find them and if you do, let me know also. Thanks

To: studdog who wrote (84)	11/11/1997 3:54:00 AM
From: Alfred W. Post	Read Replies (3) \| Respond to of 226

I like you to comment on my home made theory on interest rates: I have come to believe that the actual cost of money is about 3%. Add to this the infation rate and you arrive at the theoretical interest rate for a particular country. If their is a difference between this theoretical rate and the actual rate, this shows you the direction in which interest rates will develop. Greenspan has not yet discovered my secret formula, but he acts, like he knew it. With this said, therE is a grEeater feasibility of sinking than raising interest rates in the USA. Naturally you have to add to this other and in part political considerations. But I have found, that my formula gives me the necessary assurance of my own prediction during a time when they all are discussing this problem and making you unsure. WHAT DO YOU THINK ABOUT "MY SIMPLEFORMULA" . i FORGOT TO MENTION THAT i HAVE DIFFICULTIES IN CHOOSING THE CORRECT MEASURE OF INFLATION, IS IT THE CPI, th wohlesale incex or the deflator? yours Fred from Switzerland