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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (5465)	6/11/1998 3:43:00 PM
From: Kirk ©	Respond to of 42834

To answer your second question, first, I'm guessing that the Fed's inaction is based upon current events in SEA. I think the Fed is quite worried about the direction of global economy. Agree completely. Consider if you were a Japanese citizen with 141,000,000 Yen in either your mattress or Bank (difference being the bank gives you 0.5% return). Now with that you could buy $100K in US Treasuries paying 5.50% in US Dollars with your 141 yen to the dollar, hold the treasuries for 6 months and maybe get back at maybe 180 yen to the dollar on top of the 5.50% interest... The faster people that pull this stunt and at larger numbers will make the yen plumet even harder and increase their returns... It also gets all that more difficult for the Japanese banks to support the yen. To me, this also explains part of the high p/e on the big names as these are the companies mattress savers are comfortable investing in. we live in interesting times. web.ukonline.co.uk kirk out