Wall Street: bets on the Fed

Article Abstract:

US interest rates are expected to drop, and could fall to 5% by Jun 1996. There is concern that too high interest rates could affect investment levels. There is disagreement as to dangers posed by wage inflation. Some analysts such as J Alfred Broaddus argue that job losses will help control wage pressures, while others such as Robert T Parry see wages rising due to low unemployment levels. The administration also wishes to see a rise in the value of the US dollar, which would need US interest rate reductions to occur with reductions in German interest rates.

Interest rates

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Wall Street: selling delayed

Article Abstract:

A cut in US capital gains tax is deterring some investors from selling shares. Congress has proposed such a cut which would be backdated to Jan 1995. It is not clear whether such a reduction will be implemented, but deferred selling could lead to a drop in share prices when the budget is announced. Some analysts argue that this is will be a short-term drop since proceeds from sales are likely to be invested in shares again, but optimists recognise the likelihood of a correction.

Economic aspects, Tax planning, Capital gains tax

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Flat-to-net short

Article Abstract:

Technology stocks have been falling in Oct 1995 while steady consumer shares have performed steadily. A lead column in Barron's expressing the view of the investor Art Samburg has shown bearish sentiments. An extension of the budget deadline has been agreed by the White House and Congress but this news has not helped boost the bond market. Yields for US long bonds have dropped to 1994 levels. US interest rates are not likely to rise in the short-term.

Capital market, Capital markets

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