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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: mister topes who wrote (5957)	7/14/1998 11:47:00 PM
From: MrGreenJeans	Respond to of 42834

Profit Growth <<If profit growth slows interest rates will decline even further and inflation will this will justify even higher price-earnings ratios as investors pay more for future earnings and dividends by lowering the discount factor to present value and thereby increasing the market multiple for shares. >> Under some scenarios, no doubt, but if profit growth slows at American multinational companies because of an influx of Asian imports, it would hurt profit margins in this country and the equity markets would adjust accordingly and be priced at lower levels. That is the view from here and that is the current view from the Federal Reserve.