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Strategies & Market Trends : The Art of Investing -- Ignore unavailable to you. Want to Upgrade?

To: Cymeed who wrote (340)	1/11/1999 4:16:00 PM
From: Sun Tzu	Read Replies (1) \| Respond to of 10695

The principle I stated is still in tact. However it does not mean that "interest rate cut has little to do with stock price". It means that interest rate cuts by themselve are not enough to boost the economy and bring earnings to the companies as some had suggested at the time. Today was an interesting day for me as two of my "premonitions" strongly came true (and sadly I failed to act on them for a great profit). The first had to do with interest rates. They had a good short term reversal and I missed the bottom on them. The other was about go2net (GNET) which all the talk on the TDFX thread had me thinking I should buy it, as it is my favorit net-stock. I was about to act on it today, but since it had climbed $16 on the day (about 30%), I figured I should wait, only to see it climb $54 to 120! This is a 114% just for today! Anyway, back to your question. We are at an important junction in time. The introduction of Euro and the improvements in major Asian economies, can mean that we may have an unusually stable economic environment ahead which may easily last for another 30 years or so. On the other hand, these positive currents are in their infancy and are very fragile. As is the world economy. A major shock to the system within the next 3 years can send things hay wire for a long time. I know that this is not the answer you are looking for. But my prognosis is that the system is in a critical balance state and this is the best I can answer you. Either way, bonds make for an excellent long term investment today. As for stocks, I expect the market to remain very volatile and many bubles to burst this year. This does not have to be disasterous if you are in the wrong stocks. On a different note, I rand my computer screens to update STIA on Friday. The new nominies are ADCT AES CAER HDI HI HRC KSU LXK OWN PDX SBL SKYW SYB VRC. There were also some repeat items. I have not had the time to choose which among them. I'll probably do that tonight. Good luck to all Sun Tzu