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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?


To: donald sew who wrote (56170)10/23/1998 2:12:00 PM
From: Lee  Respond to of 58727
 
Hi Don,..Re: Does anyone have an idea where they could re-couple again, whereby rising rates will have a negative effect on the market.

I think it will be much higher, like 6.25% or greater because of the uncertainty remaining about SE Asian and/or hedge fund liquidations. No one knows the extent of any of these commitments. Plus, it depends on no more funny business regarding the dollar, (like that sudden 12% decrease a few weeks back).

Also, as we need the financials to lead, higher long rates are better for their bottom line,(borrow short and lend long). And finally, the market never moves in logical steps, tyx will overshoot going the other way as well. But eventually, trading will focus on US domestic fundamentals and probably settle around 5.75% - 6% unless CPI and commodities (oil) get out of hand.

Like I really know! <VBG> But only been watching tyx & bonds since '94 so it's somewhat a WAG. <g>

Regards,

Lee