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To: TTOSBT who wrote (1088)9/1/1998 11:53:00 PM
From: Sam Scrutchins  Respond to of 5102
 
There never was a recession, bear market or projected downward momentum in the stock market while interest rates were below 7% current interest rates are 5.26% WAKE UP PEOPLE!

TT,

I would have said the same thing yesterday. Today, someone (a colleague) reminded me of the fact that we have an inverted yield curve right now, something that is often a precedent for market declines. Looking back to the 40's and 50's, when interest rates were very, very low, this sort of interest rate scenario would have scared a lot of investors into a panic. Whose to say that we are not returning to those sort of low-inflation, low interest rate days. In fact, one can make a strong case that we are now leaving the inflation-ridden 70's and 80's and returning to a more traditional/typical interest rate environment. I'm not sure, but I am beginning to believe that we CAN have a bear market with low interest rates. Think about it, and study your history.

Sam