The Dow's Dilemma Over the Dollar: Experts, Investors Try to Explain ...
If the economy is so good, then why are financial markets so bad? Why, specifically, are investors punishing the dollar and the U.S. stock and bond markets as they did todayÛÓwhen the Dow closed down 62,15ÛÓat a time when most economic indicators suggest continued economic growth and iow inflation?</br></br>If the economy is so good, then why are financial markets so bad? Why, specifically, are investors punishing the dollar and the U.S. stock and bond markets as they did todayÛÓwhen the Dow closed down 62,15ÛÓat a time when most economic indicators suggest continued economic growth and iow inflation? ington Post spoke today with economists and investors who closely follow the financial markets. Here are the questions and their answers.</br></br>A ÛÏYes, the economy is in reasonably good shape,1Ûª said Richard B. Hoey, who is chief economist and a portfolio manager at the Dreyfus Corp., a large mutual fund company. ÛÏWe have a sustainable expansion in growth</br></br>A The answer, say the experts, is that the financial markets already have taken the good news into account in securities prices.</br></br>ÛÏFinancial markets look into the future to determine what stocks and bonds are worth today,Û Hoey said. "TodayÛªs economic recovery was taken into account by investors starting in See MARKETS, B2,Col. 3