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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (6967)	10/10/2000 5:45:11 PM
From: Dealer	Read Replies (1) \| Respond to of 65232

STOLEN STUFF--From: donald sew Recently I have heard alot of hoopla about the US DOLLAR's value being so high and the EURO so low, that it is keeping the market up. What some may fail to realize is longer-term the strong US DOLLAR may have significant downside effects on our stock market. I checked this past weekend again with some of my old buddies in the steamship biz, and they confirm again that the vessels are full both import and export, but that the US EXPORTs are only the cheapest of cargoes such as waste paper/metal scrap/wet salted hides/cheap chemicals(syn resin)/ paper products/lumber&logs. To put it into perspective, a container of waste paper has a value of $500-1500 while a container of imported electronics has a value of $400,000-1,000,000+. There is hardly any machinery/road building equipment being exported now from the US which is already hurting quite a few domestic industries. What makes it worse is that competitive products made in EUROPE are now cheaper in light of the value of the EURO vs US DOLLAR and exports ex EUROPE is improving significantly in terms of value. In other words, more and more EUROPEAN companies which are more reliant on their exports, are doing better which could help improve the economy of EUROPE. Lets wait a few quarters and see. If this does improve the economy of EUROPE and other areas, then eventually the EURO will become more valued which could cause an outflow of currency from the U.S. There are some hints that such has already started. I'm no expert in international economics, but I don't think I'm that far out of line.