Is a LOR from a professor with a Masters Degree good enough?

[Profgif]

My Master of Science in Organizations (Business School) thesis supervisor is a statistician with the same Master's degree as I. He is Head of the Finance and Accounting Department where I work as adjunct professor (this is a third world university) and director of the research group I belong to (on Solvency and Financial Risk). My research and my thesis under him have dealt with financial econometrics and econophysics (several conferences and minor local publications were done as a result). I will apply to a PhD in economics (top 5 to top 30 universities, my fields of interest are financial econometrics and financial economics). He has always been enthusiastic and supportive of me and his LOR will certainly say only the very best things since he knows me closely, (his LOR would be my strongest LOR). Is a LOR from him a good choice or should I avoid it and look for a LOR from a PhD even if it is not as enthusiastic? (My other two LORs would probably come from a PhD in economics and a PhD in physics, but I don't expect theirs to be as strong since they know me considerably less.)

Many thanks for your advice.
PG

[asianeconomist]

Well nowhere in the LOR does the recommended have to mention his academic qualifications (but he does have to mention his rank - professor/asst. professor). Hence, I guess, given that he's the head of the department (which he can mention) and will write you a strong LOR, you should take the opportunity.

[Greecon]

I would send 4 recommendation letters if I were you.Good luck with your applications!