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 : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Tom Trader who wrote (31339)	12/16/1997 2:22:00 PM
From: Jerry Olson	Read Replies (1) \| Respond to of 58727

TT check this out... Tuesday December 16, 2:04 pm Eastern Time Slower US growth, benign inflation in 1998-Merrill NEW YORK, Dec 16 (Reuters) - Moderating consumer spending and Asia's financial crisis should produce slower U.S. economic growth, benign inflation and lower interest rates in 1998, Merrill Lynch [NYSE:DJM - news] analysts said on Tuesday. Gross Domestic Product (GDP) growth should slow to about 2.5 percent next year, down from nearly 4.0 percent in 1997, chief economist Bruce Steinberg said during Merrill's 1998 outlook press conference. ''The slowdown in Asian growth will slow the entire world economy, including the U.S.,'' the economist said. ''For the U.S., the Asian events are really the equivalent of a few Fed tightenings,'' Steinberg said. The widening trade balance expected because of increased Asian imports should shave at least 0.5 percentage points from GDP growth, he explained. In addition, Steinberg said stock market gains in recent years had boosted consumers' confidence and, as a result, their spending -- generating a so-called ''wealth effect'' that added perhaps 0.75 percentage points to growth in 1997. Next year, however, the wealth effect should be less prevalent, helping to take the shine off consumer spending and growth, he said. Steinberg said overgrown capacity and a strengthening dollar will produce disinflation and in some sectors of the economy, deflation, in the year ahead. ''We have never been this far into a business cycle with the inflation rate continuing to come down,'' Steinberg said. ''There isn't an inflation risk in the economy this year, next year or anytime soon.'' He projected the U.S. Consumer Price Index (CPI) would rise by less than 2.0 percent, and he said the risk of deflation could prompt a Federal Reserve easing sometime in 1998. But he added that ''the deflationary pressures we see are not going to turn into a full-blown, '30s-style crisis.'' Equities instability, coupled with slower growth and steady to lower inflation, should generate a rally in Treasuries and other ''safe-haven'' fixed income investments, said Martin Mauro, a Merrill fixed income strategist. ''If the economy is going to be slowing, there's going to be a greater focus on quality,'' Mauro said. ''Treasuries would be a beneficiary of that.'' Steinberg projected the 30-year Treasury bond's yield would decline to 5.50 percent by mid-1998, compared with 5.97 percent on Tuesday afternoon. More Quotes and News: MERRILL LYNCH (NYSE:DJM - news) Related News Categories: US Market News, currency, international, options Help Copyright c 1997 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon Important Disclaimers and Legal Information Questions or C

To: Tom Trader who wrote (31339)	12/16/1997 2:26:00 PM
From: Muizz M. Kheraj	Read Replies (1) \| Respond to of 58727

Oh yeah...my guess on your age Lisa : 28 Muizz