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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Tai Jin who wrote (14159)	9/29/1998 12:01:00 AM
From: Jose Matos	Respond to of 18691

Well said. I think I liked Greenspan better when he kept an eye out for inflation and wage pressures and so forth. Since when has the FED's job become to prevent natural corrections or stabilize the world markets. I'm sure he knows that any rate cut, be it 25, 50 or even 1 full point is still only a bandaid. Yes, a cut of 50bp or more would give a short term pop to the US and world markets, but it still won't magically revive the top line GROWTH of the large multinationals. When all is said and done, the only way up is when earnings and growth have been firmly established (8% +) and earnings visibility becomes clear. Reducing the cost of borrowing to these companies which have become increasingly dependant upon Asia, Europe and S. America for their top line growth won't help much if those parts of the world are in up to their ears in poop. My bet is that tomorrow we get a 25bp cut, and let the bleeding begin. Regards. Jose.