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Strategies & Market Trends : Tech Stock Options

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To: donald sew who wrote (39004)4/10/1998 1:29:00 PM
From: Gersh Avery  Read Replies (1) of 58727
 
Thanks Don ..

Yes I agree that the money will be looking for safety ie: US bonds.

Currently US bonds have some speculative money in them.
When bonds jump up, the speculative money will "profit take" and go into stocks. That makes the entire market go up. When bonds go down hard, speculative money leaves stocks to go back to bonds.

I look at it as if it were water flowing. It flows off the high point to the lowest.

Lisa re inflation:

The Fed has been pumping out dollars at the rate of ~10% per year lately. Yet our inflation is currently only ~1.5% (? not sure the exact numbers) The remainder of the dollars have been absorbed by the rest of the world as "safe haven holdings". At this time every government on the planet is dumping dollars to support the yen.

The day may come when our markets may look to us as if they are going through the roof. However our import costs will suddenly go up fast. It may take a month or two before we get the news that hyperinflation has come home.

Remember .. the Feds main worry still continues to be inflation .. AG has now gotten to the point, I believe, that he thinks there may be nothing he can do to stop the events we are about to see.

Gersh
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