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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Trebor who wrote (2731)1/11/1998 2:02:00 AM
From: wooden ships  Read Replies (3) of 42834
 
Bob: About that Asian flu...Bob Brinker states our market has
already discounted it. However, has our market discounted the
real possibility of Hong Kong's relinquishment of its currency's
peg to the US dollar (US$1.00 ~ HK$7.8), or the possibility of
further devaluation of Red China's yuan? If this peg is removed,
a new round of "competitive devaluations" could result with
further evaporation of Asian wealth and more financial instability
in that region. Our US stock market may have adjusted to current
Asian conditions, but the aforesaid scenario may not be, in my
simple mind, presently discounted. Of course, such a scenario
might not obtain in the future. Perhaps, the market forsees this.
Howsoever, at this point, who can tell?
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