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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (80597)	6/18/2002 2:30:03 PM
From: orkrious	Respond to of 99280

the buck is getting crushed quotes.ino.com

To: ahhaha who wrote (80597)	6/18/2002 2:33:13 PM
From: DebtBomb	Read Replies (2) \| Respond to of 99280

OK, thanks, gggg. A bear trap is something set by the bears, you know. ;-)

To: ahhaha who wrote (80597)	6/18/2002 2:33:59 PM
From: t2	Read Replies (2) \| Respond to of 99280

In this era a falling dollar is bullish for American stocks. It takes some thinking outside the box in order to see that. I guess that's too contrary for those who are fixated with the past, and we all know how much Wall Street rewards such fixation, since it spends so much time discounting the past. Very interesting points. I had thought we would get a modest rally in stocks (large caps) and a bit of a selloff in bonds recently from this dollar weakness. For some reason, the markets have not played out that way in the past few weeks; so I wonder whether it is just better to go with the flow. I am a nervous long here and considering selling a bit to protect yesterday's gains. The dollar drop is making the mood more negative it seems. That is the way the market sees it. The one thing that could make a difference is asset allocation changes out of bonds and into stocks. I believe bonds are a worse investment than stocks in a falling dollar environment but it seems the market does not agree.<g> Dollar dropping is also obviously good for metals such as gold, silver.

To: ahhaha who wrote (80597)	6/18/2002 3:15:02 PM
From: mishedlo	Read Replies (3) \| Respond to of 99280

In this era a falling dollar is bullish for American stocks. It takes some thinking outside the box in order to see that. Falling $ is only good for US manufactors for the most part. Since we will never be able to compete with China and asia on price, I see no real benefit to fally $. Everyone is trying to talk up or prop up the $. Those maesures will fail and probably only make matters worse. M

To: ahhaha who wrote (80597)	6/18/2002 3:38:29 PM
From: velociraptor_	Read Replies (2) \| Respond to of 99280

The falling dollar is not bullish for stocks. The last 10 years in the markets have invited billions and billions in foreign investments, not only in stocks but in bonds and treasuries as well. A falling dollar makes all of that unattractive to foregin investors because it has an opposing effect on those gains as it lowers value. In a market that is already weak, the falling dollar further compounds the problem and encourages liquidation by foreign investors which adds selling pressure all around. Interestingly, a rising dollar is also not good because the DOW consists of many multinational companies and it is the DOW which has held the fort for the last 2 years. A rising dollar in this case lowers the value of foreign dollars and thus lowers the revenue of those companies. It's a catch 22 with a cliff on either side. The only resolution is a stable dollar.