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To: Keith Feral who wrote (79798)	7/6/2009 12:36:42 PM
From: Archie Meeties	Read Replies (2) \| Respond to of 118717

Dollar weakness is positive for earnings in the following sectors: commodities, multinationals, technology. It's negative for consumer discretionary, bond holders, other areas related to domestic consumption. Equities perform well during inflationary times, provided there is economic growth. RE Natural Gas, Credit Suisse, has a report out suggesting that last week's slightly lower than expected number was because of filling constraints, not an improved s/d balance. sendspace.com I find their reports thoughtfully written and free of bias.

To: Keith Feral who wrote (79798)	7/6/2009 3:50:57 PM
From: Sober	Read Replies (1) \| Respond to of 118717

".. I can't figure out the relevance of the US dollar to being short equities.." .. You are probably correct in your suggestions about long term recovery and the need for a healthy dollar. I was only posting what I have been observing as I watch the market each day. I wonder if it might not be a long time before serious money flows back to the US from Asia. The dollar is under re-consideration by foreign governments, unless the news is exaggerating.. "..Top Federal Reserve officials are piling pressure on Ben Bernanke, the central bank’s chairman, to keep US interest rates pegged in the present range of zero to 0.25% indefinitely, even though futures markets are pointing to a rise in the cost of borrowing some time before year’s end.." "...Chang Min, the head of the Korea Institute of Finance's macroeconomic research division who worked at the central bank until late last year, said, "The central bank has long considered several alternatives such as buying gold to diversify its foreign exchange reserve portfolio, which is heavily focused on dollars. It needs to secure more gold to diversify its investment." "..AIX EN PROVENCE, France -- France, Russia, and India questioned the role of the dollar as the world's reserve currency during the weekend, indicating its status is likely to be a strong talking point in this week's Group of Eight leading nations' summit in Italy. At a conference here this weekend French Finance Minister Christine Lagarde called for better foreign exchange policy co-ordination, hinting that the dollar's role as a reserve currency may need to be discussed in the medium term..." ______________________________________ Don't these sentiments mean anyting? Should we expect the dollar to rally under this pressure? The most likely future, as I understand it, is a cheaper dollar and all that goes along with it... which lately has been a higher stock market. But I know how easy it is for sentiment to change, and for actions to be taken that can obscure obvious expectations...etc.. Sober