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

To: William H Huebl who wrote (62209)	1/11/2003 5:48:50 PM
From: Real Man	Read Replies (1) \| Respond to of 94695

I don't understand them either, and it's a market manipulated directly by the Fed. But it seems to be the root of this bubble, easy credit. Credit market moves the dollar, because it's the largest market of them all. Fear drives people into Treasuries, which leads to higher spreads and higher yields on corporate or junk bonds. Then greed drives them back into corporate bonds, in search for higher yields. This leads to reliquification, improvement of corporate balance sheets, higher dollar and stock prices. I guess there are more foreigners in the corporate bonds now than in treasuries. When there will be serious doubt about the dollar, both corporate bonds and treasuries will tank, leading to dramatically lower dollar and lower stock prices