Consensus National Futures and Financial On Line Index
Hosted by:
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(816) 252-4080
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WESTFALIA INVESTMENTS
TECHNICAL COMMENTS
The Asian crisis, and few signs of inflation, kept the Federal Reserve from raising interest rates at the November FOMC meeting. The Consumer Price Index for November rose by a small .01% Inflation measured by the core rate remained low. As we see it, inflation will continue to move lower as cheaper exports from Southeast Asia create dis- inflationary effects in the global economy.
EQUITIES: The year- end rally resumes as investors eye stabilizing markets in Asia and a benign inflation environment. In our previous comments we said, “the early December surge was being temporarily derailed.” We are encouraged by recent developments in Japan and Korea to help stabilize the financial markets. We see the traditional flow of pension money helping to support the year-end rally over the next few months. We continue to look for the market to reach its old highs by year-end.
GOLD: We continue to look for the yellow metal to reach the 275 level. We believe the worst of the decline is over. We look for major bottom to be established at the $275 level.
DOLLAR: Japan sells dollars for yens for the first time in five years. We think a turn-around for the yen is approaching.
BONDS: No inflation, disinflation should keep yields moving lower. We look for long-term yields to reach 5½% in the first half of 1998.
December 18, 1997 Peter Cardillo, Director of Research
Westfalia Investments, Inc.
90 West Street, New York, New York
Consensus National Futures and Financial On Line Index
Hosted by:
One Crossroads Place
610 West Maple Ave, Suite WWW
Independence, MO 64050
(816) 252-4080
sysop@kcmo.com
