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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: X Y Zebra who wrote (1579)	5/19/1999 7:12:00 AM
From: Henry Volquardsen	Read Replies (3) \| Respond to of 3536

The higher the equities go, the higher the risk becomes... (IMO), so a perception of "comfort" with the equity markets leads to a misunderstanding of what risk is, (or unwillingness to understand it so). strongly agree A constant increase in their yield requirement at some point must seem unreasonable from a safer instrument than those of equities. yes. but it is worth noting that while real rates of return are high they are not at historic or unsustainable levels. And nominal yields are at low levels for the latter half of the twentieth century. This is giving some foreign investors a negative spin on the US at the moment. / Enough so to start pulling money out of a relatively safer place ?... comparatively speaking, of course... its a subtle thing. no, there is know money being pulled out specifically for this reason. I think it is more of an increase in background noise that can influence decisions. In addition, the weaker countries may be negatively impacted by a potential increase in rates, be this by the market or by the Fed. / Either way... the Feds seem to be somehow limited in their ability to be the ones leading a potential increase, rather, I think they seem to be acting as the boogey man.... just in case the equity markets get out of hand. yes and yes Love the Tips & Hints