2. Broader equities will be hurt by higher interest rates, but they will be bouyed by inflation and industry consolidation, ie. takeovers & mergers.
For this reason I see equities going sideways. Might the Dow and other indices slip to a lower rung of 'hell'? Possibly, but I dont see that happening without higher interest rates or the failure of a large financial institution. So at this point its worth looking for evidence of a turn around. A rally to 12,400 pts would be pretty convincing evidence at this point.
Andrew Sheldon www.sheldonthinks.com