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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up?

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To: goldsnow who wrote (475)11/23/1997 6:42:00 PM
From: chirodoc  Read Replies (1) of 3902
 
<<<<< could be driven

could is the operative word. yes i think there will be some sales of treasuries. but when they can print money--and their only high yielding investment is treasuries and u.s. securities, i don't think they will bail out en masse. don't forget you need to add the depreciation of the yen and the strengthening of the dollar to the euqation.

add 10% dollar appreciation to the 5% yield and you have a 15% gain in 6 months--where else can they get that?

i am no saying they will not sell--just saying the financial incentives are not there when the government is stuck in deflation--all economist know that that is a good time to print more lettuce.
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