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Strategies & Market Trends : The Stock Market Bubble

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To: Moominoid who wrote (951)8/4/1998 5:23:00 AM
From: Real Man  Read Replies (1) of 3339
 
It looked like this round of decline started here, in the US, the
global markets (including Asia) followed. Of course, Asia gets
all the blame for the slowdown. But the truth is - the American
market is way overpriced, even more so than Japan in 1989. Asia
served more as a buffer for US markets creating flight to "safety"
effect which delayed the imminent collapse, and pumped more air into
the bubble. As the Asian currencies crashed the capital went into
US bonds and stocks. If the foreigners flee, the net effect will be
extremely nasty - the bubble will deflate quickly and lots of pain
will be felt, the dollar will drop.
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