John Lonski
John Lonski
bonds buy convinced economy rates rising rush slow unless
Don't rush out to buy long-term bonds as rates are rising unless you're convinced that the economy is going to slow significantly.
attractive bonds extend opportunity sell
It makes sense to sell 30-year bonds now. This is an attractive opportunity to extend maturities.
bottom clearer happen help
It would help to put in a bottom if we had a clearer idea of what may happen in Iraq,
corporate early encouraged financial growth improved measures perhaps relatively since
They're perhaps encouraged by the improved measures of corporate financial health. We've had relatively brisk growth by profitability ever since early 2002.
economy fed gain half hikes imply latest lie mark rate second speed temporary turning
This could mark a turning point. After all, the Fed was right, the latest slowdown was temporary and the economy is about to gain speed going into the second half of 2005, which would imply that more rate hikes lie ahead.
evidence sluggish
This could be interpreted as evidence of a still soft, sluggish economy.
brings gains
This brings the possibility of steeper-than-anticipated gains in profits.
averages equity five growth law market percent seems year
Five years of having equity market growth of 25 percent a year seems to be a thing of the past. The law of long-term averages is reasserting itself.
ahead hurry increase interest
is in no hurry to go ahead and increase interest rates.
abroad events market worried
The market is really worried about events abroad and what may go on at home,
economy
The economy is doing better, but where is profitability?
added committed fed global higher inflation investors order potential price pursuing reassure remains risks statement theme underlying
The underlying theme (in the Fed's statement) is the same but the Fed added the statement on the potential for higher inflation risks in order to reassure global investors that the Fed very much remains committed to pursuing price stability.
effect fact income increase left month personal troubling
The troubling fact is that even if we take out the effect of the hurricane, we're still left with a lackluster increase in personal income for the month of August.