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Tom,
The pundits of economics worry that low unemployment leads to higher
inflation. With more people at work there is a higher demand for goods and
services. With the higher demand you get higher prices, thus inflation. In
order to curb inflation the Federal Reserve raises interest rates. High
interest rates drive the stock market down. Until we see higher interest
rates, I wouldn't worry too much about bear markets.
David Radtke
(Embedded
image moved metastock-list @ metastock.com
to file: 12/05/97 05:40 PM
PIC04570.PCX)
To: 55crownvictoria @ WORLDNET.ATT.NET, metastock-list @ metastock.com
cc: (bcc: David Radtke)
Subject: Re: low unemployment,bear market,correlation???
Tom....
It's a little bit more involved than that. I suggest you read up on those
times....speculation was high, you had the OPEC problem, as well as
interest
rate and inflation problems. I really don't think you can draw a
correlation
between then and now. That bear market was a slow and painful one....it
brutalized all!
Jerry
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