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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: goldsnow who wrote (23279)	11/23/1998 12:11:00 AM
From: Ming	Respond to of 116763

Lower rates, easy money..It's no surprise that cenbanks around the world are trying this in the wake of a global recession, the likes of which we havent seen since the 1930s. For the opposite policy-tight money brought them the depression. Lower rates will certainly drive more people into gold-for they guarantee long-term credit expansion-and monetary inflation. meanwhile, credit crunch still developing in the U.S. yield spread between tbills and junk bonds are still high, and show no signs of returning to normal levels anytime soon. And keep in mind that rates take 18 months to work into economy. Therefore, current fed policy moves is unlikely to stop econ contraction next year. So earnings outlook over intermediate term is quite gloomy for US multinationals. 98/99: Asia mkt will probably show no change in earnings, Europe might see slight increase, Latam will see significant drop, as will domestic US mkts. Result: S&P earnings might actually decline from 98 to 99, after a year of zero growth, and stagnate if one factors in the potential interest savings from Fed interest rate cut. Which calls into question the current near 30 p/e on S&P stocks.