Capital Gazette wins special Pulitzer Prize citation for coverage of newsroom shooting that killed five

Fed's rate cuts are called a signal to buy stock


IN THE WAKE of the Federal Reserve's unsurprising decision yesterday to reduce short-term interest rates by another half-point, its fifth this year, some observations:

Writing in Money magazine, June, financial writer Michael Sivy says, "The bull is back! By slashing interest rates several times this year, the Fed has all but guaranteed a powerful recovery for the stock market."

MORE ON RATES: "Now is the time to be more aggressive in buying stocks on corrections. This year's rate cuts reduce the risk for both the economy and the stock market." (Medical Technology Stock Letter)

"The Fed may have gone too far in lowering rates so quickly and by so much, but this provides a lot of liquidity to push stocks higher." (McClellan Report)

"Investors are responding more favorably to prospects of lower interest rates than to negative implications of weak economic news." (Channel Trend)

CHINA CHARGING: Have you ever considered investing in Far East securities?

"China is charging ahead," according to Personal Finance newsletter. "With 1.2 billion consumers and an economy predicted to grow by 7 percent in 2001, it's hard to ignore the Chinese market. And China's pending acceptance into the World Trade Organization is a huge plus."

Under the headline, "Crouching Tigers: Our Favorite Chinese Large Cap Picks," the article lists China Mobile Telecom Ltd., HSBC Holdings PLC, Hutchison Whampoo Ltd. and Legend Holdings Ltd.

WALL ST. WATCH: "Tax cuts generally boost the stock market. For the six tax cuts since 1960, the S&P; 500 rose an average of 17 percent in the first year after the cut vs. an average 10.5 percent gain per year." (Charles Kadlec, author, "Dow 100,000: Fact or Fiction")

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