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Strategies & Market Trends : Stocks Crossing The 13 Week Moving Average <$10.01

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To: Bucky Katt who wrote (12172)3/2/2003 4:13:24 PM
From: James Strauss   of 13094
 
Unfortunately there is a lead lining in that outcome. A seriously weakening U.S. dollar will hasten the exodus of foreign investment from U.S. government bonds and other financial assets. In 2002 a euro-based investor lost 17 percent in currency depreciation on top of the 23 percent that they lost, on the average, in U.S. stocks. This is no small concern: foreign investors own as much as 42 percent of all our U.S. treasury bonds, and 18 percent of our long-term securities and stocks. Anything remotely resembling a "run" on U.S. assets could put devastating pressure on our markets and our economy.

The health of the U.S. dollar is, therefore, well worth the recent attention it has received. More to the point, U.S. investors should take steps to protect their own portfolios through global diversification, one of the foundations of modern portfolio theory. With the way things are going, the sooner your global positions are in place, the better.


Good article William...

Jim
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