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Strategies & Market Trends : Heinz Blasnik- Views You Can Use

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To: Bid Buster who wrote (1755)5/23/2003 12:15:13 PM
From: John Madarasz  Read Replies (2) of 4905
 
Dollar History...

The US Dollar moved to another low this morning. Historically, the Dollar peaked against the German mark in August 1968 just when the market was peaking. It then began a bear market that did not end until January 1980. The 1968-1982 period was a secular bear market similar to what we believe we are in now. The dollar then got a nice rally to February 1985 and this was helpful to the strong market we saw in 1982-1987. It then peaked out and began a 2 year decline that broke the 1980 low and was one of the reasons the stock market crashed in 1987. Weakness in the buck in 1990 and 1994 contributed to the poor market action in those two years. It eventually made its final low in April 1995 which was also at a new low. The mighty advance in the Dollar that followed from that low to a final peak in October 2000 helped the Dow achieve a 300% (4,000 to 12,000) advance during that period.

www.chartcraft.com

interesting to note also that 1995 saw the initiation of the Rubin/Clinton "Strong Dollar Policy"
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