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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (2168)	6/7/2003 12:15:27 AM
From: John Madarasz	Respond to of 4904

what's worse...? Euro Climbs Near Record on ECB Rate Cut Thu Jun 5, 6:06 PM ET Analysts said that although the ECB's aggressive rate cut narrowed the euro-zone's interest rate differential over the United States, signs of weakness in U.S. economic data are firming investors' expectations that the Federal Reserve (news - web sites) will cut interest rates later this month. Traders said that while the ECB easing triggered the euro rally, the uptrend has been in place for months thanks to demand from Middle Eastern investors. "I think it's a natural demand by Arab and Middle Eastern names who continue to put money into the euro because of fear of their money being (taken) by the U.S. Treasury," said Hugh Walsh, vice president of Fortis U.S.A. in New York. "There's just huge amounts going through," he said. "This has been going on for the last month, month-and-a-half. I was speaking to someone today and they claim it's just the tip of the iceberg." story.news.yahoo.com

To: LLCF who wrote (2168)	6/7/2003 12:42:20 AM
From: TobagoJack	Read Replies (1) \| Respond to of 4904

DAK, <<Wonder what's worse... worthless paper or overvalued shit denominated in worthless paper?>> :0) I know what is worse, and am trying to not commit the sin: buying overvalued shit denominated in worthless paper but purchased with worthmore paper financed at positive real rates. Chugs, Jay

To: LLCF who wrote (2168)	6/9/2003 1:13:02 PM
From: Perspective	Read Replies (2) \| Respond to of 4904

Over the long haul, the relation to earnings stream gives stocks some inflation-hedge potential. And if you are short them, you can lose as the dollars you produce on the short sale are devalued away. If inflation is 20% but earnings are only growing by 10%, the company may be losing ground, but if you are short it, it should still track the earnings growth (even if it is contraction in real terms) and your short loses money. This assumes constant valuation - which would theoretically get hammered by rising rates - but as long as rates are pinned by AG at zero, the valuation will be pinned where it presently is, near infinity. BC