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Pastimes : Ask da_cheif -- Ignore unavailable to you. Want to Upgrade?

To: GROUND ZERO™ who wrote (3391)	7/18/2001 6:57:16 AM
From: Moominoid	Read Replies (2) \| Respond to of 8150

I'm thinking about the outlook for the USD and the interplay between that and the stock markets. History doesn't seem to be much of a guide. In 1985 onwards the dollar was devalued but the stock market soared. But I suppose then foreign portfolio investment flows into the US were not so important. So the improved competitiveness of US industry is what drove the boom. What actually happened to US interest rates at that time? Now those flows seem to dominate all else. The question is whether foreigners would start to withdraw their capital or try to hedge their positions in the foreign exchange market? One thing I've noticed here is that newer international managed funds (as we call mutual funds) are not using hedging whereas the older ones are - either one way or fully hedged. So the bottom line is I haven't really formed any view on this yet. What do you think? David