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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: sandeep who wrote (60755)	11/6/2002 10:53:17 AM
From: Real Man	Respond to of 94695

Not that it matters, but there is over $1 billion per day outflow from the trade deficit, which has been countered by paperizing dollar swaps. When it finally breaks down, it will go down hard. Now is about the time, because holding currency market together is not an easy task (it's nearly impossible, IMHO, and it already held ground for more than 3 months). Over $1 billion in foreign money has to go into dollar investments each day. Where would they go? Bonds? Current interest rates don't sound too attractive, given currency risk. Stocks? Who in their right mind will buy them now that they are still overpriced and in a bear market. We may have a bounce here, so there will be a fight, but the bounce won't last IMHO.