Lower interest rates… more than anticipated

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Mr. Greenspan will soon lower interest rates again. Probably by 0.25% now and another 0.25% in December, or simply by 0.5% and that is it.

Either way, it is well anticipated.  At this stage, monetary stimuli has already been very important and it is not these last decreases in interest rates that will change much.

We remain positive in the medium term. The next good news will probably arrive in March-April when companies report their 1st quarter results. They, by themselves, will not be exceptionally good, but compared with the results of the 1st quarter of 2001 (which were pretty bad), will show some growth again.  Overall, interest rates will then start to have their effect on the economy.

We are fairly invested at this stage but in a selective manner … Selectivity is essential in your investments.

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