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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: Voltaire who wrote (51617)5/17/2002 2:29:07 PM
From: Jim Willie CB  Read Replies (1) of 65232
 
seriously, Volty... cash flow is looking good for stocks
but it is difficult to tell how prominent hedge fund activity is
yesterday Interest Rate Observer Jim Grant pointed out that he saw evidence of big hedge fund participation
and not as much mutual fund participation as would be healthy for confirming the commitment of new positions

with the dollar sliding still, it is now lower than it was BEFORE the stock rally began two weeks ago
US stocks could continue to rally some more
but the currency market can totally trump the stock runup

the US artificially low 3-mo TBill yield rate is now hurting the dollar
currency traders are leaving the dollar and its low rate
some are coming in for buying stocks, to be sure

but one is a lion, the other a damaged kitty cat
lions eat kitties, even when they are healthy
$22 trillion is a lot of tidal movement away from the shore
some would say this is but a wall of worry
maybe
but I tend to think we are "descending a wall of hope" now
/ jim
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