Instead of taking their money out of dollars, however, they switched into American equities.

The firm invests in the American public equity and hedging markets.

And other factors besides the stable dollar, such as deregulation in some foreign nations, are also spurring the flow of funds into American equities.

They can buy and sell American equities quickly and with little trouble.

Their stock markets, while not taking off, are doing better than American equities so far this year.

The same is true for foreign investors, who, having seen their local stock markets climb in the last few months, have been venturing into American equities.

When the dollar is stable and interest rates are moderate, foreign investors flock to American equities.

Moreover, some analysts contend, higher short-term rates could bolster the dollar, and attract foreign investors into American equities.

Others estimate that European investors alone own 10 percent of American equities.

Managers still maintain the 'negative stance' they have held on American equities since September.