I read the same thing somewhere else. The question is at what point might we see trouble in the "I" fund? I don't think the strengthwe saw this week is due entirely to the exchange rate of the dollar. Also, our exposure to France and Germany's economies is about 17% of the total "I" fund. Is that enough to offset strength in other areas? It appears we are going to continue our policy of benign neglect of the dollar, which continues putting pressure on overseas markets.
For me it is a day-to-day call. How overseas economies react to their individual situations will determine how to play this. I think any pull-back will be slow if things start to falter. I'm hoping it looks good for another month or so, but like I said its day-to-day.
There is a lot of liquidityoverseas. I suspect a lot of that money is going to find its way into our own equities. At some point I do think those of us playing the "I" fund will want to reduce our exposure. Especially as our interest rates rise (meaning we attract more overseas money)
I also heard someone on MSNBC yesterday say that the fed may not raise rates too much as it could eventuallyslow downour own economy. We want to continue to attract global investors, but at the same time not slow down the train. How do you see it?
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