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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (27440)	9/27/1999 8:29:00 AM
From: Rarebird	Respond to of 99985

<AG's remedy for the weaker Dollar is another rate hike... that should strengthen the dollar and attract the return of foreign investors back into the U.S. equities> Not likely. The stock market is a forward looking discounting mechanism. Rate Hikes have a way of eventually slowing the economy, which in turn weakens the currency. The Dollar topped out at the time of the first rate hike, just as it bottomed last year at the time of the first easing. Soft landings are the exception ( 1994) not the rule when the Fed aggressively raises rates. A Recession is extremely likely if the S@P remains flat to down. The process of repatriation has already been set in motion, for very good reasons from an international point of view.