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

To: Defrocked who wrote (8142)	11/16/1997 5:34:00 PM
From: Rational	Respond to of 18056

Defrocked: John Makin is talking about the same fundamentals as I have discussed in some of the posts here: * Investment growth has resulted in US expansion. * Excess capacity. * Cheaper goods * Deflation * Low corporate profits * Low global demand for goods His wishful thinking that the US Bond prices should go up to maintain the American prosperity may not come true (IMO) due to the Japanese move to sell US Treasuries (that John did not know of at the time of writing his article). The bond prices will fall (IMO), raising rates here until a new equilibrium value of dollar is reached. This will pull down the US stocks, which, as the Fed sees, will maintain long-term stability. Sankar