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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: John Pitera who wrote (500)3/17/2000 3:16:00 AM
From: robert b furman  Read Replies (1) | Respond to of 33421
 
Hi John,

Good article . It might be wise to keep an eye on the yen.It appears that currency speculators may not be staying with the yen too much longer.
futures.tradingcharts.com

If a large supply of debt instruments ,is met with a declining currency - my bet is the yield on the bonds goes up.

I wonder how many hedge funds are betting on cheap rates in Japan and higher rates in the U.S..If rates in Japan became higher than rates in the U.S. - a whirl wind of unwinding hedge positions could make the U.S. bond market soar and create a huge liquidity crisis in the equity markets. Not a positive catalyst when coupled with record high margin debt.

That scenario is almost so scary it could put an end to the world's greatest bull market <g>

Thanks for the heads up.

Bob

P.S. what part of Houston do you live in ? I'm in the woodlands.