Nadine; One thing a lot of people are not taking into account
is the drop in the dollar as this market went up this last
time, that will come home but it could take a bit.
Slap a dollar index over the S&P , from Sept 1st and it won't look near as hot.
The rate cuts would have been nice had they not killed the dollar,
but now they are just a band aid, and one that will have to be
re-placed with more rate cuts, who knows maybe some day we can
cut rates as low as Japan has, until they become negative and
you pay the Government to hold your money.
BTW while the pundits have been beating up on Japan, had you
bought her or Hong Kong with dollars, OCT 1st..you would at this
time be 10% better off dollar wise than had you bought the
S&P500 on it's low.
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It's sort of odd what happens when a countries currency starts
dropping, at first the stocks may rally real good..or at least
look that way to the locals, ( of course Japanese who had to convert to dollars to buy our stock on their low in OCT, don't see
the same gains we do, and wish they had stayed home, any way
while stocks often do get a spike when the currency falls,
in time they follow the money.
Jim |
