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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: OldAIMGuy who wrote (5166)	7/23/1998 9:02:00 AM
From: JZGalt	Respond to of 18928

Watching corporates is at best an indicator of the short term trend. I was around when corporates were refinancing bonds from 15% down to 9% thinking they were "locking" in a deal. Eventually rates went lower. Demographics, spending patterns and money supply determine rates longer term. There is nowhere to go but down for right now. The key would be how much money will be "created" to get Asia and Russia out of a slump. If the money supply is expanded greatly without the corresponding economic activity to "absorb" it, then you get inflation and Greenspan is willing to pull the interest rate trigger to moderate that. Take a look at the 10 year chart on rates, the trend is down, the minor rises and falls don't matter for now. ---- Dave