Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sergio H who wrote (8315)	9/2/1998 7:39:00 PM
From: Razorbak	Read Replies (1) \| Respond to of 29382

Green Oasis (Black Mirage) Hey, Amigo. Did you see the latest news today regarding GRNO? The SEC featured them in today's edition of the SEC News Digest... Message 5657553 sec.gov Boy, doesn't that bring back memories? <vbg> I'll drint to thaat... <hic!> ;^) Razor

To: Sergio H who wrote (8315)	9/2/1998 7:48:00 PM
From: Ditchdigger	Read Replies (1) \| Respond to of 29382

Hello Sergio,owning BBBD is owning a growth company and playing the currency market all wrapped in one<vbg> Interesting article. Dollar stages sharp reversal in fortunes Gains two-thirds of a cent as investors seek haven Wednesday, September 2, 1998 By Marian Stinson Money Markets Reporter The dollar surged by two-thirds of a cent against a sagging U.S. greenback yesterday to end the day at 64.43 cents (U.S.), as investors sought refuge from global turmoil in the Canadian bond market. The sharp shift in fortunes for the dollar began in overnight trading, alongside an upturn in commodity prices that also came to the rescue of the Australian and New Zealand currencies. "Until recently, the U.S. bond market has been getting all the safe haven flows," said Rob Palombi, senior analyst with Standard and Poor's MMS. "Now investors are taking some profits there, and shifting some of the funds into the Canadian market." The price of the long Government of Canada bond climbed by $1.50 (Canadian) for each $1,000 in value, lowering the yield to 5.64 per cent from 5.72 per cent Monday. Early yesterday, the dollar changed hands at 65.37 cents (U.S.), up 1.6 cents from Monday's close. And more wild swings in value could be still to come. "I've told the traders you better get to bed early tonight, because it will be wild and woolly for the rest of the week," said Robert Burgess, managing director of global foreign exchange for TD Securities Inc. "Markets always overshoot, and they always correct," which is why the changes in value have been so extreme recently, he added. However, the persistent negative view that has driven the dollar to a long series of record lows against the U.S. currency is gone, and foreign traders are looking for reasons to buy Canada, Mr. Burgess said. "I'm not sure the worst is over," but the view is turning more optimistic about Canada, he said. Last Thursday, the Bank of Canada boosted short-term interest rates by a full percentage point to 6 per cent in an effort to bolster confidence in the dollar, which slipped below the 70-cent mark last April. On Monday, the Bank of Canada intervened in the currency market at several levels, buying the dollar as it lost value, ending the day at 63.76 cents. Confidence is gradually returning to the Canadian dollar after the rate increase by the central bank, analysts said. "I think the interest rate hike has made a difference," said Alister Smith, senior economist at Canadian Imperial Bank of Commerce. "But commodity prices need to rise for the Canadian dollar to be consistently stronger." Prices for silver, copper and natural gas rose yesterday, although a longer-term improvement is needed to improve confidence, he said. As well, the price of gold jumped to $279, up $3.30 from Monday, a sharp rebound from the 19-year low of $274.60 reached on Friday. A freefall in U.S. stock prices on Monday knocked 512 points from the Dow Jones industrial average of blue-chip issues and led to a plunge in the value of the U.S. dollar early yesterday against many other currencies. "It's not so much a strong Canada story, as much as a story of U.S. weakness," said Harvinder Kalirai, Canadian-market analyst in New York with Idea Inc. The drop in the greenback triggered a selloff in U.S. equity markets yesterday morning before a turnaround lifted the Dow Jones index by 288.36 points to 7,827.43. Underlying the nervousness in global financial markets are worries about the economic problems in Russia and Asia. "We've seen remarkable flows of funds into U.S. bonds," CIBC's Mr. Smith said. As a result, in the last 10 days of August, the yield for long-term U.S. Treasuries fell 35 basis points to 5.05 per cent yesterday. (A basis point is 1/100th of a percentage point.)