Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (6232)	6/1/2002 12:37:46 AM
From: Jorj X Mckie	Respond to of 33421

A bear market??!!!! Say it ain't so!!!!

To: John Pitera who wrote (6232)	6/1/2002 11:43:33 AM
From: Hawkmoon	Respond to of 33421

Bear market? The benefits of a strong dollar have been a double edged sword. The strength of the dollar has subsidized the world's economy to the disadvantage of US manufacturers. Sure, weakness may cause some capital flight from the greenback, but the question is where that money will go?? To foreign equities? I find that doubtful given that both Japan and Europe have been relying upon exports to the US economy to sustain some equilibrium in their economies. A weak dollar will possibly mean even more unemployment in Japan and Europe as they are FINALLY forced to restructure to compete on an even playing field with regard to productivity. But we should perceive one more aspect of this.. When the WSJ finally starts paying attention to the weaker dollar, it may suggest that we're approaching the lows. And the monthly chart of the USD suggests that 105 may be a target where the USD should rally and remain within the monthly trendline: futures.tradingcharts.com Personally, I would rather the dollar find an "tolerable" manner in which to break below the monthly trendline so it would "flatten out" and stabilize rather than reflect this tremendous advancing move. I don't like the fact that other economies hide behind their weak currencies to prop up their economies and delay restructuring. But I will lay you odds the rest of the world will try and find a way to support the dollar in order to continue to prevent taking their economic medicine. Hawk