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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (42963)	8/12/1999 11:15:00 AM
From: pater tenebrarum	Read Replies (1) \| Respond to of 94695

Haim, i disagree on the point that bonds are going down because of inflation - the inflation data, even though they may be understated(remember up until 1-2 years ago there was a debate going on about the official inflation data OVERSTATING actual inflation) do not support that contention. the real reason for the weak bond market are foreign money flows, which have recently turned negative for the first time in 20 years. this is due to the perception that european and asian economies are recovering, while the U.S. economy may be on the verge of a slowdown due to the Fed's vigilance. if these trends persist, the dollar could conceivably weaken a lot further from here, which could precipitate a massive sell-off in U.S. financial assets. regards, hb