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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Lee who wrote (18198)	4/28/1998 10:04:00 AM
From: IQBAL LATIF	Read Replies (2) \| Respond to of 50167

Lee-- chat On uncanny ability-- Bond traders are far more sophisticated in approach to markets-- forward looking bond markets hide a lot of mysteries to unravel them is an art we try our best to excel-- I think to see beyond what an ordinary eye is seeing is the name of the game. We all in our own modest ways are contributing to make this art popular. To be honest your bond call was a great call in timing and precision- hats off to you. I am so pleased that finer points are noticed and commented upon by keen watchers like you.. However my ultimate logic is if ASEA sells US remains steady--- only if ASEA and Europe recovers we get higher possibility of bond yields rising with that a rtenewed pressure on US equities. With this single argument I have highlighted a wedge which leads to discount the argument of OCT repeat scenerio in global markets. I would think that any further ASEAN slide if any will only consolidate markets in US at these levels this is because ASEAN weakness will discount rising interest rates theory. In absence of interest rate alarm the events will unfold quite differently as weakness in ASEA/Europe would result in ultimate sell off in US equities, san interest rate the fall in ASEA or Europe will indicate renewed deflationary threats or a renewed threat to banking system. I hope to discuss this in detail some other time.