Dollar Rally Ending — Equities Correction Approaching

My friend Tiho over at the Short Side of Long has written some nicely documented posts about the dollar rally ending — temporarily in my opinion — and the equities market toping:

  • Stocks: Possibility of a Correction Approaching (part 1 and part 2)
  • Currencies: Dollar Rally Ending (part 1 and part 2)


Tiho said...

I very much appreciate the links and that you read it. I would just like to correct the misconception there:

My view is that the Dollar is topping and that the Equities are correction... temporally, because it is not Equities which are overbought, but actually Treasury Bonds.

Once Government yields rise / bonds sell off, Equities will march higher after the correction as money flows back.

It will be a real disaster for someone to buy the Dollar here, as you make it sound like it will only experience a correction. Last thing I want is for someone to be losing money coz of me hehe!

Selling the Dollar, on the other hand, will make you plenty...

pej said...

Yes, I know. I tried to make that clear, but now, with the addition of your comment, I think indeed that nobody can misinterpret your point :-)