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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: Cynic 2005 who wrote (16443)	1/20/1999 2:15:00 PM
From: MythMan	Read Replies (1) \| Respond to of 86076

>> It it is headed down,<< Oh, really. Looking at the tick it just might be a buying opportunity right now.

To: Cynic 2005 who wrote (16443)	1/20/1999 2:24:00 PM
From: bill meehan	Read Replies (4) \| Respond to of 86076

AR: I respectfully disagree. I clearly got the sense from his testimony that the Fed Head passed-up a good opportunity to talk the market down. The following are excerpts from midday comments to clients: Evelyn Woods pays off. With all of the major market measures well off their early highs, and the Dow down more than 50-points, the much-anticipated comments were released to the public. Quickly scanning his prepared text, it was clear that the Fed was nowhere near close to taking away the punchbowl. Mr. G expressed more concern about negative ramifications of growing protectionism than he was about the party on Wall Street. The following was as close to a critique on the equity market as he got: "The recent behavior of profits also underlines the unusual nature of the rebound in equity prices and the possibility that the recent performance of the equity markets will have difficulty in being sustained. The level of equity prices would appear to envision substantially greater growth of profits than has been experienced of late." And the following statement seemed to flash a green light to traders: "Movements in equity prices can play an important role in the economy, which the central bank must take into account. And, we may question from time to time whether asset prices may not embody a more optimistic outlook than seems reasonable, or what the consequences might be of a further rise in those prices followed by a steep decline. But many other forces also drive our economy, and it is the performance of the entire economy that forms our objectives and shapes our actions." Before the clock struck 11:00, all of the major market measures had moved to the morning's best levels, and I was only surprised that the market wasn't even more ebullient. (The “restraint”—the Spoos only rallied about 12—was probably due to the fact that the Q&A session was still in progress.) ...it's clear that he's unlikely to be forthcoming with anything that will contain the bull. In fact, the gist of his comments seems to mark him as a true believer in the “new paradigm”.