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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: IQBAL LATIF who wrote (10015)11/19/1997 7:05:00 AM
From: William H Huebl  Read Replies (5) | Respond to of 94695
 
Iqbal,

It looks to me we have 2 of the 3 uncertainties out of the way... IRAQ may turn out to be a non-event and Greenspan isn't raising rates. The 3rd, SE Asia has certainly taken on a life of it's own, but historically, those markets typically don't DRIVE ours... surely we reflect in some small way those markets, but our reaction to them is the concern - they are just symptioms.... or excuses, if you will.

I see the bond rates testing prior lows set back in early 1996. Then once THAT happens, we will need to develop a strategy of where the markets will go from THERE.

IMHO

Regards,

Bill



To: IQBAL LATIF who wrote (10015)11/19/1997 7:37:00 AM
From: robnhood  Read Replies (1) | Respond to of 94695
 
Hi Iq, <inflation threats are being ignored>,,,that seems to be the rub of it,...the funds seem to have so much cash , that they are capable of ignoring most anything,,IMHO
russell



To: IQBAL LATIF who wrote (10015)11/19/1997 10:46:00 AM
From: studdog  Read Replies (1) | Respond to of 94695
 
Iqbal,
Except for the fear of Japanese selling, I don't see any reason for bond yields to rise. Historically, 10 year treasuries have been around 5 when inflation was this low. Deflationary forces I believe will help to keep the lid of inflation in this country even in a growing economy, and as there is evidence that the economy is actually slowing, then I would not expect bond yields to rise,but rather fall.
What are your thoughts on that?

Karl



To: IQBAL LATIF who wrote (10015)11/19/1997 11:12:00 AM
From: Joan Osland Graffius  Read Replies (1) | Respond to of 94695
 
Hi IQBAL, >>why should it be here when economy is so strong-inflation threats are being ignored I see a retracement of 4 points in bond

It could be we are having a supply and demand environment with the bond. The flight to safety effect. I also suspect if the fed thinks it is over done they will raise their rate. Also the Japanese could help us out. Does this make sense?

Joan



To: IQBAL LATIF who wrote (10015)11/19/1997 6:37:00 PM
From: Haim R. Branisteanu  Read Replies (1) | Respond to of 94695
 
Latif, are we not flatening the yield curve?? My understanding that the Gilts are already inverted. If not for SE Asia and A.G. we would had by now an inverted yield curve.

Haim