Booms, Busts, and Recoveries Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Mad2 who wrote (659)	11/14/2000 11:13:15 AM
From: BOC	Read Replies (3) of 74559

Hello All: I am new to this thread. Just wanted to interject a few points. The key is the U.S. Dollar vs the Euro. Anyone that follows currency prices surely has witnessed the ECB (European Central Bank) trying to prop up the Euro. Now, you must realize that the Euro and the dollar have an inverse relationship. In other words, if the Euro goes up the dollar goes down. The strong dollar has been the catalyst in attracting massive foreign investment. Without the foreigners our market would not be where it is today. The problem with this theory/approach is that if the dollar becomes too highly valued it begins to severely impede earnings growth for our domestic companies overseas. As we have all come to realize good earnings=higher stock prices. So, one might ask, what does this all mean. It simply means this: in order to perpetuate the "bubble" (and dont believe for a second that it's not) the dollar must be devalued against the euro (and other currencies for that matter). In order to satisfy that criterion we will actually see a joint intervention (ECB and the US) to prop up the Euro. Being a student of history one can look back and see a large degree of trend change in the dollar BEFORE any type of recession/depression. This scenario fits logically together. Once the Euro is propped up at the expense of the dollar we will see our market indices most likely rally to new all-time highs. That will be the final blow-off in the greatest bull market in US history. In the meantime everyone should be doing their research into the gold, silver, and currency markets in hopes of finding alternative investments. It is these vehicles of investment that will experience the largest price increase/bull market ever to be witnessed. Most importantly people stay pragmatic. Do not become to myopic with your views. Good luck to all. This is a great thread. And for those die-hard bulls, believe me, this thread is doing you much more good than harm.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next