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Strategies & Market Trends : Waiting for the big Kahuna

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To: GROUND ZERO™ who wrote (83681)11/25/2008 4:05:26 PM
From: Real Man1 Recommendation  Read Replies (1) of 94695
 
I say - maybe. Things are screwed up quite a bit. Treasury bonds
not tanking, for example, as credit risk on them soars. The
perfect storm involves rapidly falling dollar and rapidly
falling treasury bonds. Nice discussion here...

"Why do stocks go up when the dollar goes down? Imagine one
person owning all the shares of a company who is willing to sell
the stock for $50 a share. If the dollar drops 50% over-night
and you go to that person to give them $50 for a share of stock
they will say 'no, no, today I need twice as many dollars for a
share of stock because the dollar is worth half as much…' so the
stock price rises to $100."

minyanville.com
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