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Non-Tech : Invest / LTD -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (3304)	9/24/1998 8:53:00 AM
From: SJS	Read Replies (1) \| Respond to of 14427

ABS Market Commentary: (http://www.abslive.com) with RealAudio. _______________________ Commentary: Greenspan was clear. They will lower rates next week when the Fed next meets. His rationale and supporting evidence are unimportant. Rates go down so stocks must go up. Especially those most damaged by the global liquidity implosion. So wehad huge gains for the financial stocks and their dependencies like Brazil and Mexico. Techs also had a high beta day -- has there ever been a happy day when the techs were the laggards? How come all the Internets soared although just a few (XCIT, YHOO) had real news today? Oils had a nice move on the hopes for higher oil prices. But please never trust OPEC. Lots of money going back to work. Did the trends changes? You bet. Before the 2:00 Greenspan rally I looked at the various sectors and factors. The S&P was stuck in neutral. Safe stocks and techs were good while internationals and financials were not. Now any chart you look at says buy the market while the banks have turned the tables on the safe utilities. However Greenspan doesn't spell relief for economically sensitive retailers and manufacturers in the "real" economy. Stock prices are set by discounted future earnings. The Chairman looks set to lower the discount rate. However he is apparently pessimistic about the two components he cannot fix: uncertainty and economic performance. The range of possible external events is much wider than we could have imagined three months ago. Clinton coming or going? Dictators back in vogue! And Y2K. And it's certain that the earnings streams of most US corporations will be turbulent for the next several quarters. Lock and Load. Slightly Different Question: Is the Bear Market really over?