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Strategies & Market Trends : Tech Stock Options

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To: PnclNk who wrote (51596)9/5/1998 12:49:00 PM
From: Gersh Avery   of 58727
 
In the long term a cut in the Fed rate will cause the markets to drop further. The reason for this, is that it will cause the value of the dollar to fall. When that takes place foreign investors will pull their investment out of the US to preserve their gains. When they do this it causes the dollar to fall more leading to more foreign investors getting out leading to more drop in the dollar .........

Greenspan is indeed walking a tightrope.

Please note that in the 1930's the US had interest rates that had dropped a long way down v/s the 1920's. Look at the interest rates in Japan. Think .. do lower interest rates really help stock markets?

Gersh
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