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

To: HairBall who wrote (47500)	4/20/2000 6:34:00 PM
From: No Mo Mo	Read Replies (1) \| Respond to of 99985

Thanks for the excellent forum LG. You run one of the best threads I've come across. Well done. -Darin

To: HairBall who wrote (47500)	4/20/2000 6:36:00 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 99985

Fleckenstein tonight on the Euro and gold: Euro limbo: How low can it go?. . . Away from stocks, there was an interesting development in currency land. The euro, the newest worthless currency introduced on the planet, made another new low, taking out the spike low that it made sometime back. Old-time readers will recall that when the euro was initially launched, we thought it had a chance to be a decent currency for a while, even though we had serious reservations about its future in a difficult economic environment. (It is not clear that these different nations will pull together on the same oar in times of stress, as we tend to in this country.) Nevertheless, as soon as the euro was introduced, it promptly began depreciating. We got off the bandwagon of being a euro bull shortly after it was introduced, and haven't wasted much mental energy rooting it up. In the interim, it continues to plunge. The folks at the ECB don't seem to care. They've given lip service to how they want it to do better. They drew a line in the sand a while back that we noted would be tested, and it is being tested. At some point the euro is going to get low enough and there will be a panic amongst the Europeans. At that point they will either do something to make it better, which could ultimately coincide with a serious decline in the dollar, or the euro could just collapse and they'll go back to the regular currencies. I suspect that all of this will be bullish for gold in the long run, and intellectually I am bullish on gold. Gold has to compete with the fact that everyone loves the dollar, and heretofore everyone has loved stocks, so it has just not had its day in the sun yet. So I think it's worth keeping track of what the euro does, because at some time there will be an inflection point in the gold market or in the dollar as a result of the abuse the authorities heaped on the euro. There may be an investment opportunity at some juncture.