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“Last year saw very strong earnings. People did not expect it. Now the bar for 2006 has been set higher and the risk of disappointment has risen.”
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“Inflation has been very modest, and that is the biggest single factor affecting interest rates. And as long as inflation remains modest, rates won't rise dramatically.”
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“It's not really a conundrum because earnings have been terrific for financials and they are likely to remain solid this year.”
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