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Technology Stocks : Intel Corporation (INTC)
INTC 36.20+0.1%Dec 26 9:30 AM EST

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To: Amy J who wrote (182479)10/30/2005 9:23:40 AM
From: Rarebird  Read Replies (1) of 186894
 
>>I would certainly bet INTC is much better to buy than USD, at this point.>>

The recent strength of the US Dollar is not primarily due to the expectation of more rate rises, but due to the repatriation of overseas capital by US businesses and individuals to postpone a meltdown in their balance sheets. However, this process is finite, one can only repatriate one's capital once. They know that as the process continues a growing investment deficit is going to be added to the trade deficit in the monthly US current account deficit figures. They know that when the repatriation is exhausted, the US Dollar will be hanging in mid air with nothing at all to support it, except the continued demand of foreign Central Banks.
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