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Strategies & Market Trends : The Options Box -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (10528)	4/20/2001 2:31:08 PM
From: hobo	Read Replies (2) \| Respond to of 10876

Cavallo has "designed" a basket composed of the US Dollar and the EURO. I do not know what would be the intent since either way, what Argentina needs is to Export. How can they export when they have their "happy-go-lucky" northern neighbors offering cheap labor to the Argentinean auto industry (and probably others too)? So employment, and economic growth goes to Brazil rather than Argentina. Would exporting meat and oil be sufficient ? (what about employment ?) This reinforces the idea that AG is the central banker to the world, not only to the US. Without a viable strong currency in sight, the dollar will continue unchallenged. Personally I doubt the Euro or the Yen will be the one to challenge the Dollar. This leaves the US Dollar with continued strong prospects, in spite of the FED lowering interest rates. Plus the US government has already expressed they are want a strong Dollar. Thus creating a favorable environment for stocks since we would have a friendly environment in terms of interest rates, plus as a US dollar denominated asset that looks strong to foreign investors. To boot (making a case for the bulls), we hope that a "better" educated investor and possibly the broker community would target companies that their business prospects are more solid than say... Pets.com. Just making a case for some more bull scenario. -g-