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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: velociraptor_ who wrote (49148)	3/15/2001 8:16:19 AM
From: alruss	Respond to of 57584

Another component of the missing cash debate that I don't hear much about lately, is the capital flight that occurs due the anticipation of rate cuts, and their expected effect on the US $. Declines in rates implies a decline in $. Though the strong dollar has remained a public political position, privately these big bankers etc. want to support the Euro, Yen, etc. Robert Reich thinks lower rates/weaker dollar will (eventually?) create more jobs in exporting companies. The '87 Crash (starting to feel like a mini crash) was stimulated by SECTREAS talking down the dollar, though the conditions were ripe. Lots of big (smart) money moves before rate cuts start,and the sort of smart money a little later, and comes back when rates stabilize, a few months later. The pundit's all say stocks will be higher 6 months after rate cuts begin, but this doesn't imply that stock's will be higher 3 month's after. Those who have travelled to Europe in last year know how strong the US$ has been! WFII at 6.75 yesterday?, and it might earn .96 this year, 1.36 next year? LOL, somebody is wrong here! Velo, sorry if I oversimplify here, but I assume someone might read this other than you.