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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: Zeev Hed who wrote (2768)12/28/2000 10:51:47 PM
From: Ahda   of 3536
 
Don't enjoy it too much, since we are probably going into a protracted period of a wide "range bound " market (just waiting for earnings to catch up with still rich valuations).
Zeev

A large portion of estimates of earning had to do with the telecommunications industry cost savings and projections of greater profit to the base sector. This enthusiasm of tech set the whole world in an lets buy USA mode in my opinion. Our earnings are stating this was fad based.
The European nations though Ron disagrees with me on potential have a populous base of about 320 million and a high service output. Tracking down debt I have not yet done so I am just assuming their is a conservative aspect to Europe as well as Asia. Japan had a very tight employment base prior to her currency problems the difference was part of hers was due to loyalty ours is due to no such thing .
One would assume in our situation there where the employment market is so tight that profits would be abounding in industry creating growth but this is not the case. All rests on technology to increase production and lower costs. However we are not seeing either at this moment. Looking at earnings and playing catch up to rich evaluations is another question. How can this be done when you are paying premium for employees or are the figures off, which is entirely possible as revisions of fed stats are occurring. How can this be done when due to excessive inflation within our dollar and minds being like prove technology can and is being produced elsewhere at more competitive cost.
I now go to the retail sector if there are excess dollars they do flow during the holiday season .It appears competition is so stiff within the industry that there is no flow. This leads me to believe combined with increased gas cost and energy that we are in the beginning of an inflationary period the likes of which we have never seen.
I agree about AG but on an entirely different premise. If it appears there is a slowing the debt level minus profitable earnings continues to grow. Lowering the rates is a temporary relief to maintain an economy that has a diminishing export base and increasing import base. It boils down to if we bought other nations business at our high dollar rate and if presently our dollar is not quite as valued as it was in the international market we have taken on debt in fixed dollar that might have to be paid with lesser dollar. The Baht dropped and Japan sunk we could find as the Euro raises we will sink. Our dollar I fear could end up with little buying power.
Ron you can come back at me with without the US the rest of the world is in trouble we have greed appetites. Our retail figures are saying we aren’t so hungry nor is the profit in USA so gargantuan. We do like to serve papers , cellular phones are next as the profits are truly vast in the private company world of law. Too bad we just didn’t care about preventing damages to life period instead of creating profit from misery.
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