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Non-Tech : Dorsey Wright & Associates. Point and Figure -- Ignore unavailable to you. Want to Upgrade?

To: Mr. BSL who wrote (822)	10/8/1999 6:43:00 AM
From: wizzards wine	Respond to of 9427

Morning Dick...Yes a weaker dollar is good for foreign trade as it means that they can more easily afford US products...If one looks to the increasing US trade inbalance, the strong dollar has been one of the problems... Later Preston

To: Mr. BSL who wrote (822)	10/8/1999 11:41:00 AM
From: Hardline	Read Replies (1) \| Respond to of 9427

The strength/weakness of the dollar is a very complexed issue. The reason is because it depends on the make-up of the company not just if the dollar is going up or down. Here are some questions to ask: Where is their product made? Where is it sold? Where do they buy raw materials from? Do they have foreign debt and is it local currency or US dollars? Where do they consolidate results? For example: G and KO like a weak dollar because they make their product abroad and when the dollar is weak, it gets converted back into US dollars they get more dollars. GTE likes a strong dollar because they have a lot of foreign debt in the local countries currency. When they pay the foreign debt using US dollars, it takes less dollars to pay off the debt. PIR likes a strong dollar because they purchase foreign products and resell them in the US. Farmers like a weak dollar because they purchase their raw materials in the US and the sell products into foreign countries. If the dollar is strong, there will be less demand overseas and causes surpluses here which will drive the prices down. That is why the CRB is at record lows. Then there are the SEMIs that make products oversea and ship them here. They like a strong dollar because we will buy more. But if they also sell those products in those depressed areas, that is bad because demand will fall there. But the bottom line is it best if the all currencies remain flat. You maybe able to make money off of a short term occurrence but if weakness continues, it can cause recession, inflation and/or devaluation in specific countries and the trickle up/down effect will eventually get everyone. Hardline