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COPYRIGHT 2004 FDCH e-media
Original Source: THE MONEY GANG
PAT KIERNAN, CNNfn ANCHOR, THE MONEY GANG: Let`s start "Talking Stocks". Joining us today is Eugene Profit of the Profit Funds. He is ready for your questions now at 1-800-304-3638.
ALI VELSHI, CNNfn ANCHOR, THE MONEY GANG: E-mail us at MoneyGang@CNN.com.
Eugene, let`s save me - save us from ourselves. Good to see you here. What is going on with this market, Eugene? Why is - what is the downward pressure? Is this really interest rates? I mean, if interest rates go up, how much are they going up by? We`re still going to have a low overall interest rate. Mortgage rates are still going to be historically low.
EUGENE PROFIT, PRESIDENT, PROFIT FUNDS: Yes, but I think the market participants have gotten used to having a very low Fed funds rate. And once the Fed does change policy, it doesn`t stop with one rate increase. So investors are having to go back and really re-look at the valuations and determine - it`s not totally unexpected that interest rates would begin to rise.
But I think the real issue that`s making the market be a little bit volatile is that you have seen corporate earnings coming in at stronger levels. GDP has been going up, but...
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