Article Abstract:
US interest rates look set to rise if economic growth is at some 4% in 2000, though rate rises are not common in a year when there is an election. Bond yields look set to rise in 2001 if they do not rise in 2000. A new US president could boost fiscal policy. Over the shorter term, stock selection is important. Meanwhile, Yahoo!'s stock price is performing well, and Intel has achieved a profit. The overall strategy of AT and T is not easy to assess, though the company has seen a rally in its stock price.
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Article Abstract:
There is uncertainty in financial markets, and US institutions have cash due to selling in Jul 1999, while US interest rates could rise. Stocks can perform well if they are purchased during a temporary drop in price. The US Federal Reserve if likely to act with a drop in interest rates if stock prices drop seriously. It would not be rational for rates to be lowered after Federal Reserve chairman, Alan Greenspan, has persuaded markets to drop, but then the market is not behaving in a rational way. This lack of rational behavior provides opportunities for stock selection.
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Article Abstract:
There has been a buying panic on Wall Street, which has proved bears to be wrong. Some investors had thought that stock prices would fall, but they have again been proved wrong. Meanwhile, the settlement systems of the US and United Kingdom will be linked, and this will cut costs for investors. Any problems in Wall Street are reflected in the global stock market as a whole, and trading volumes decrease so it it difficult to diversify. Stock prices in the UK are likely to be affected by any problems in the US, and fund managers are having to be selective in their investments.
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