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

To: JF Quinnelly who wrote (8323)	10/9/1998 10:42:00 PM
From: Jim S	Read Replies (1) \| Respond to of 42834

Interesting stuff, JFQ. I'm not enough of a global economist (or any kind of economist, for that matter) to be able to criticize or praise the PEI analysis. What does make sense to me is that there seem to be a lot of weak currencies in the world, and currencies can only strengthen relative to other currencies. If the US lowers interest rates, our currency will decline vis a vis other currencies. And if all the G7 loosen, we will be competing with one another not for the honor (and bond sales) of the strongest currency, but for the most "export friendly" (read, weakest) currency. My poor feeble mind begins to boggle at this point, and I can't intellectually decide whether the events in progress now will be for the benefit or the detriment of the US economy. My gut tells me that it ain't a good thing, though, and I'm more inclined to believe my gut. There may be some serious problems with a gold standard, but at least I could understand it. If you can help explain what's going on globally, I'd like to listen to your thoughts on the subject. Good trading, jim

To: JF Quinnelly who wrote (8323)	10/10/1998 5:23:00 PM
From: Wren	Read Replies (2) \| Respond to of 42834

Princeton Economics Institute's opinion that the global crisis may come to a head in the next few weeks (#8323) is completely opposed to BB, who said today that we should be fully invested because the climb to new highs may had begun yesterday, but in any event he feels that it will begin in the next two weeks. In new paper dated 10-9, PEI said that in times like this, cash is king. http://(www.pei-intl.com) The next several weeks should be interesting. The first caller, I believe, asked BB how his model took into account the situation in other countries, for example Japan, and BB said in effect that it didn't, except for the effect other countries problems have on earnings of US companies. (That is the meaning I got from the reply)