Sheep Shearing

Doug Henwood dhenwood at panix.com
Wed May 5 09:41:17 PDT 1999


Here's a possibility for all you fans of sheep-shearing - the rise in long-term U.S. interest rates, which bottomed out around 5.10% last October (according to the Fed's long-term government bond composite), and are now up over 5.80%. Not earth-shattering, but it means both pressure on the stock market and maybe pressure on the Fed to stop talking New Paradigm and start thinking about tightening.

But I don't think you'll see a wholesale shearing until the Fed turns hostile, whenever that may be.

Doug



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