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March 29, 2005

‘Soft' Tuesday, March 29, 2005, 2:32 PM

As to the broad market, it is very oversold and prone to rallies like yesterday, but I continue to hold the view that rising interest rates are making things more uncomfortable for holders of stocks and bonds. Unless the economy starts to pick up all over, the public's holding cash (and a bit of gold) might become the preferred alternative. Holding a low dividend payer (where interest rates on short-term money are higher) does not represent "fixed income" -- but it does represent a lot of risk to the investor.

Posted by Posted by Bill Cara on March 29, 2005 02:31:25 PM | Category: Cara Today in the Market