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To: Rosemary who wrote (23292)11/26/1997 10:29:00 AM
From: jbn3  Read Replies (2) | Respond to of 176387
 
Rosemary,

Has anyone given any thought to what the effect will be if a significant portion of the SEA investors start putting their investments into U.S. dollar-denominated securities as a hedge against their own problems?

I don't know how many countries have prohibitions against that, or how difficult it is to effect, but if they can do so, I would expect to see it happen. Any influx of magnitude should serve to support prices and push them up. (The bears will probably present some argument saying that incoming money flow is a better reason to short)

Has anyone noticed the long bond rate? Would you rather have your long-term equity earning < 6%, or in a company with 77% year-over-year earnings growth? Or even in KO?

I think the bull market has just taken a breather and should resume in strength after Thanksgiving, and should last at least as long as the bonds stay under 6%.

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