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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: American Spirit who wrote (15801)	6/3/1999 4:02:00 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 99985

AS, 1/4 point hike is priced into the bond market, not the stock market. and a continued tightening stance after the first hike is priced into neither market. whether the Fed continues to raise rates after the first hike or not is a matter of speculation at this point, as no-one can predict the future developments regarding economic pressures with any certainty. history would suggest that once rates are raised, they tend to be raised more than once. let me speculate though, that a sharp break in the stock market would make it rather more likely that one rate hike would be enough, as consumer spending would contract considerably in that case. regards, hb