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

To: Lars who wrote (2811)	1/12/1999 7:56:00 PM
From: Justa Werkenstiff	Read Replies (1) \| Respond to of 15132

Lars: Alice has gone short the market: Rivlin sees disappointing corporate earnings ahead WASHINGTON, Jan 12 (Reuters) - Alice Rivlin, vice chairwoman of the Federal Reserve Board, on Tuesday said stock market prices are high and future corporate earnings are likely to be a disappointment. In an interview on CNN's Moneyline program, Rivlin said: "Prices in the stock market are clearly very high. You have to be very optimistic about earnings to justify those prices, but that's been true for a while." When queried about her outlook for U.S. corporate earnings in the near future, she said: "All the signs point to somewhat disappointing earnings as we move ahead." Turning to the economy, Rivlin said a 0.4 percent rise in the December Producer Price Index, which was accidentally released a day early on Tuesday by the Labor Department, did not indicate a resurgence in inflation. "It's largely tobacco prices and that was something we already knew about. I don't think there is any real news here," she said about the report. Rivlin added that although an economic slowdown is widely expected, no signs have yet to emerge in the data. "It is very hard to see in the current data. I still expect it, everyone expects it, but we still haven't seen it yet," Rivlin said. "Certainly the economy is unlikely to grow at the pace it did in the second half of last year." Private economists have estimated that the U.S. economy grew at roughly a 4.0 percent clip in the second half of 1998.