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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: Amelia Carhartt who wrote (241)6/23/1998 12:22:00 PM
From: Chip McVickar  Read Replies (1) of 3536
 
Hello Susan,
Wouldn't you say that the principal argument between stocks and bonds
and rates of return has a lot to do with the "physiological psychology"
of safety and the stomack...>smile<

My wife likes keeping money in a savings account were yields are 2.9%,
she keeps asking me where are those 21% yields, we use to have.... So
at what point do 'you' seek yield instead of appreciation...within your
own psycholphysiology...?

If the treasury can service the countries debt at 5.5% they will, but
also at 10.37% if the market conditions demand the adjustment. The
international currency markets have also added a great deal of volatility
and difficulty to investing in fixed rates of return outside of your
countries currency value. Have you compared your funds returns to others
in this universe? No excuse for not being in a 4/5 star fund. Where does
it invest and in what kind debt..? What are the risks and duration..?

>>rate below which the flight to safety breaks down?
Flight to safety is again a market perception....I do not believe there is any
set rate at which our haven will break down...even at 10.37% our treasuries
could still be considered safe. Currently there is no indication that our
safe haven status will change. But pressures from the ECU currency and
international politics and Y2K bug may cause all investors to rethink their
allocations and the nature of their investments.

Asia and Japan have placed a certain uneasiness in investors around the
world. I think this is justified and worth understanding. JMO

Henry would have more accurate answers to these questions.
I hope this helps.
My Best
Chip

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