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To: Siddhartha Gautama who wrote (138990)12/17/2001 3:59:33 PM
From: sun-tzu  Read Replies (1) | Respond to of 436258
 
agree, but short term price fluctuations in any asset class have their basis in market psychology. to stay one step ahead of the masses, one must try to game this. it's for this reason that trading the capital markets frustrates most.

so...yen devaluation leads to others (like korea) which elevate the dollar. strong dollar means strong capital markets. fed money pumping gives people more confidence to throw money into equities.

now, of course, this won't work. but that's a mid to long term event. in the near future, this will continue to buoy equities and pin down gold imo.