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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: BOC who wrote (660)	11/14/2000 11:42:52 AM
From: Street Hawk	Read Replies (2) \| Respond to of 74559

I actually think a weak dollar will lead to a weak market. One of the main drivers for the strong dollar has been the strong stock market, which has attracted capital inflows from abroad. Once the dollar starts weakening and facing up to the humongous current account deficit, then we will see more panic selling in the stock market. No one wants to lose both ways, in terms of currency weakness and stock market weakness. There is no incentive for foreign investors to invest in the US stock market when the dollar is going down. You have to also realize that domestic sales is more important than international sales for most US companies. The US is not an export led country like Japan. A weak yen for Japan is a much bigger boost for their companies than a weak dollar is for the US and its companies.

To: BOC who wrote (660)	11/14/2000 8:44:16 PM
From: james paterson	Read Replies (1) \| Respond to of 74559

"Once the Euro is propped up at the expense of the dollar we will see our market indices most likely rally to new all-time highs. That will be the final blow-off in the greatest bull market in US history." I don't think the USD can go down significantly while the SM goes up. In order for the SM to go up appreciably from here foreign participation is required, imo. When the foreigners participate they need USDs which props up the value of the USD. James

To: BOC who wrote (660)	11/14/2000 10:02:13 PM
From: mirada	Read Replies (1) \| Respond to of 74559

Hi I can't imagine what could decrease the demand for US Dollar. The open policy of the US is ingenious, it makes US Dollar THE currency of the world. I do not know of any country that allow foreigner to own asset as freely as the US, for example land ownership and stock ownership with mush less restriction than any other countries. Attracking and keeping the world's wealth in Dollar makes the $ even more stronger and thus US Gov. can print even more money to meet the demand. (and will help keep the bubble going). The Euro or other currency can not generate such a demand without the openness featured in US (and I can not imagine that they can change their policy.) My point is Gold is not what it was before and that US Dollar will remain strong.