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


To: William H Huebl who wrote (17172)4/24/1998 9:29:00 AM
From: James F. Hopkins  Read Replies (1) | Respond to of 94695
 
Bill; Your not saying it the same way I would, but I can see
what you mean anyway .. and our thoughts are on the same
wave length..it's just we often don't express things the same
way..
price of bonds fall = interest rates go up, as interest
rates go up, ( if other things remain equal ) equities lose
their ability to attract money.
In general equities if they show good P/E can support higher
interest rates, or equities can support lower P/Es if interest
rates drop.
Prior to most equity crashes interest rates get high ,
and equities lose their flavor.
With low inflation..right now 6% looks good to me, better than
8% did just a few years ago.
Do you remember back when Banks at one time payed 9-1/2% on
CDs..I do because by luck I happened to buy into them..just
before a big crunch came..I'm most sure this was during or
at the late stage of when Jimmy Carter was our Czar.
As things turned out I almost could not belive my luck,
as it was not long after interest rates fell and I
had cds locked in..
Jim