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To: yard_man who wrote (103943)5/22/2001 1:25:34 PM
From: valueminded  Read Replies (5) of 436258
 
Actually, I am half serious....The issue of the strong dollar in the face of a number of negative factors cant be ignored....Until the dollar starts to decline, I think the rally stays alive.

Why should the dollar be high in the face of the fastest slashing of interest rates in years ?
My opinion: Current foreign dollars that are reinvested in the US are chasing stocks not fixed income.....

Why should the dollar be high in face of current account deficit ?
My opinion: There is no alternative that anyone has faith in & like it or not, our government maintains that a strong dollar is in our best interest. Unlike the Japanese govnt for instance which is continually cutting the purchasing power of the yen in the world market....

So why shouldnt the markets go up ? It appears that earnings no longer matter and revenue growth is not important. Layoffs arent important...Oversupply isnt important....We can expand our money supply way in excess of economic growth w/o huring the purchasing power of the dollar...

So Guys....what is going to bring the market down ?
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