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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 679.68+0.7%Nov 26 4:00 PM EST

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To: pater tenebrarum who wrote (35658)12/21/1999 11:38:00 PM
From: NickSE  Read Replies (2) of 99985
 
heinz,

Here's why the dollar remains Da King of Da Currencies:

-Foreign investors own almost $1.3 trillion in U.S. government securities, 40% of Washington's $3.2 trillion in accumulated marketable debt. Five years ago, foreigners held $641 billion in Treasurys, just 20% of the total - WSJ (12/20/99)

-Europeans put 65% of their U.S. portfolio investments into stocks this year, up from 40% in 1998 and just 19% in 1997, Wrightson calculates - WSJ (12/20/99)

but i have asked myself why the current account deficit and the massive monetary inflation have not yet led to to a sharply weaker trade-weighted dollar, and i can't come up with a satisfactory answer, except perhaps a new era oriented one that holds that the U.S. is attracting an inordinate amount of foreign investment

Regards,
Nick
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