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To: Perspective who wrote (244274)	6/6/2003 12:41:41 PM
From: Giordano Bruno	Respond to of 436258

Thanks

To: Perspective who wrote (244274)	6/6/2003 3:02:39 PM
From: UnBelievable	Respond to of 436258

You Can Offset It By Going Long The Euro Futures traded electronically at CME/Globex base EUR It used to work better when the market responded to falls in the dollar (by going down not by going up) and the volatility will give you 2X ulcers but hey. Of course if the dollars firms and the market likes that too you are 2X f@#ked.

To: Perspective who wrote (244274)	6/7/2003 12:30:03 AM
From: Simba	Read Replies (1) \| Respond to of 436258

Bobcor, Dollar devaluation must ultimately result in high rates of inflation and does that not mean future earnings in this currency for these companies are discounted at a higher rate and therefore the present value of the company will fall together with the dollar. So why should stock prices climb to compensate for the declining dollar ? Unless the earnings also go up at the same rate as the hyper inflation rate, in which case the stock price can be expected to climb to compensate for the "new" dollar level. Another way of looking at it is by looking at P/E. Assuming that the PE remains the same level, if E is measured in dollar unless it increases the price in the same dollar units will remain the same. Sure in GOLD or EUR the E is decreasing but so will the price in GOLD or EUR units. In hyperinflation scenarios, the PE's are expected to reduce due to the large discount rates for the future. Simba