From: Madeline G-B [mgb@astro-cycles.com]
Sent: Wednesday, January 03, 2001 11:11 PM
Subject: Good Timing Update: The Fed's Action

Hi Everyone,

Hopefully you all noticed that the Fed lowered the interest rates during a Time-Out! Guess we need to send Alan Greenspan a Guide! We know that nothing positive comes of actions taken during these times, but the stock markets went up anyway. What's going on?

The purpose of the rate decrease is to prevent a recession. Although we had some upward momentum in the markets today, it's likely the stock market gains won't hold and the one-half point drop won't be enough to really prevent a recession.

Although the rate decrease temporarily helps the domestic economy, we need to remember the foreign investors. This rate decrease was "strike three for foreign investors, especially European ones. Have you noticed the dollar is dropping in relation to the Euro? That was strike two. Bush's election was strike one for them, since they favored Gore to win.

Keep your eyes open. If the dollar and Euro reach parity (which is getting very close now) or the Euro goes higher than the dollar, then expect foreign investors selling out of our stocks and bonds. When that happens, the gains we got today will be lost and possibly even a lot more. So don't be fooled by the news hype! You know about timing!

Also remember, we can't save an economy drowning in debt by lower interest rates and more debt. That may be the real meaning of why the Fed made and announced this decision today. Sure they are under pressure to do this, but how effective will it be at preventing a recession? We'll see, but astrology (and economics) predicts this one won't be effective at all.

Better to choose gratitude, be grateful for what you haven't lost, and continue bringing in abundance some other way. My analysis: Looks like we may have just had our rally. Since its effects are likely to be short-lived, consider making any moves or sells now. Thursday Jan 4th could be an EXCELLENT day to sell, especially early in the day. This will depend on your specific stocks of course.

Best of luck and good timing to you!

Madeline G-B Astro Cycles Consulting
206-729-8820
mgb@astro-cycles.com
www.astro-cycles.com