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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Gersh Avery who wrote (20738)	6/20/1998 5:31:00 PM
From: set	Respond to of 94695

> Chances are that the Euro will then replace the dollar > as the main storage medium .. That leaves both Japan > and the US behind the eight ball. let me run through a thought experiment here. consider dollar buying yen as a merger accounted as a pooling. After the initial adjustment of currencies, the combined currency has to be priced against everything else from oil to the euro. ok. So far I'm just following your lead in the above paragraph, although the merger idea gets absurd pretty quickly. nevertheless some conclusions can be drawn. Most of them along the lines of - while it's not bullish, it is a step away from the brink of disaster. For example oil bought in dollars will get more expensive, but only to the point the market will bear, which aught to remain below the levels of previous years. The end result is stability, though at a cost. Another way to state this is that our strongest currency is the current strength of the domestic economy, and now, to put it kindly, we're investing that money in the hope of shallowing the impending dip. I still don't understand why the market went up on this news, but then I don't really understand what it's doing up here in the first place. Shahar