Wall Street Lifts After Washington Signals
Wall Streeters cheer Washington moves including Senate budget deficit cuts of 295 billion dollars and optimism over Reagan tax reform favoring long term capital gains. Fed officials discuss lowering margin requirements, which could boost investors’ willingness to buy stocks on credit.
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Margin Change Echoes Past Fed Moves and Market Resilience
Institutions like pension funds now dominate trading and are tax exempt, reducing margin concerns. Analyses note Fed margin cuts from 1947 to 1974 preceded rallies after a lag, with gains up to 90.8 percent. Recent Washington news and lower rates helped a rebound, lifting the Dow to 1,274.18 and NYSE to a record 106.64 as volume rose to 107.66 million shares daily.
MENTIONED IN THIS ARTICLE
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Selecting a Mutual Fund: Know Your Investment Goals
The article advises readers to demand and read a prospectus for any mutual fund. Start with your goals and risk tolerance, then verify the fund's objective matches your aims. If misaligned, seek another fund and do not be swayed by performance without alignment.
Downtown Lot Sign Indicates Open Access to All Businesses
A sign outside the downtown area declares the lot is available for customers of all nearby businesses, signaling inclusive access to parking or patron space.
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