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Green Book July 1989

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Bond Market Summary

In June, the bond market appeared to be unstoppable. After a pause mid-month, prices came roaring back edging into new high ground at month end.

Current Outlook

New highs for the market are still expected in 1989. But I think it is quite likely that the 1987 high will, for a while at least, be a significant resistance zone.

Joke of the Month

A number of you had China jokes this last month and of course there were the usual number of “totally unfit for publication” jokes. The winner comes from Gibbs Roddy (Loring, Wolcott and Coolidge) in Boston. I believe it is our first winner ever from Boston.

Not a New Bear Market

The bull market is still healthy according to our Major Trend Index. The current weakness amounts to nothing more than an intermediate correction, the correction our Early Warning work anticipated when it provided a sell signal back on June 6th and reaffirmed on June 27th.

Scanning the Markets

A performance run down for our equity market sectors ranked by June performance.

The Graying Concept Expanded: The “Graying Consumer”

The consensus way to play the “Graying of America” has been via health care related stocks. But the “Graying of America” is not just a play on health care for the aged.

U.S. Inflation History

A preview of our new U.S. inflation histograms, soon to be regular features of our quarterly Benchmarks publication.

View from the North Country

The Early Warning Work: Have We Found The Keys To The Kingdom?....The Wisdom Of Paul Miller....New Zealand and Australia Updates

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