This blog is about macro-economics, financial markets and the world that has been pulled over your eyes to blind you from the truth.
— Neo: What truth?
— Morpheus: That you are a slave, Neo.
2012-01-24
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)
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...
2 comments:
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...
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 :-)
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