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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Archie Meeties who wrote (46176)12/11/2000 2:35:34 PM
From: eddieww  Read Replies (1) of 436258
 
"The fed would rather the dollar to gradually move one direction or another..."

In fact, they and Treasury have repeatedly said that the dollar must appreciate vs others, or at least maintain it's strength. This is easier to want during an expansion. If there is a bubble and the pin has just entered, wouldn't it be wiser to bow to the inevitable very quickly?

"...when would you exit the markets relative to fed easing?"

Conventional wisdom is that you enter the market when the Fed is going to ease. In the scenario I proposed, and if you thought the market was overvalued, you might assume that stock price appreciation would not provide a risk premium vs inflation and look for an economy that was starting the process we started in 1995. No?
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