Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Alan Bell who wrote (2155)	11/18/1998 9:16:00 AM
From: Thomas M. Carroll	Respond to of 15132

I don't know the logic. But history shows that small caps do much better than large gaps after the Fed has cut rates. Tom C

To: Alan Bell who wrote (2155)	11/19/1998 11:26:00 AM
From: Jeffrey D	Read Replies (1) \| Respond to of 15132

Alan:<<You seem to imply that small caps will be helped more by the rate cut than large caps. What is your reasoning? Is this a liquidity argument?>> Alan, I believe Tom Carroll and Justa have provided you the historical perspective on this in response to your post. My thought on the logic and/or perspective is that a rate cut, especially a discount rate cut, provides cheaper money for business operations. My perspective is that cheaper money provides a greater benefit to and is more important to the little guy. Anyone else have an opinion? Jeff