Easy Money Has Been Made
I believe we are now at the point where the boys will be separated from the men (no offense to the ladies). The stock market seems trapped within a narrow trading range while the economy is getting worse, albeit more slowly.
Those who bought in the winter can thank their strong guts for one of the biggest stock market gains in recent times.
My bet is that the U.S. dollar will determine the direction of the stock market. Like before, when everyone and their friends were calling for a housing crash, everyone is now predicting that the dollar will tank. Only that we will be caught unaware like the housing crash.
Frankly speaking, I think commodities and emerging markets is where the next money will be made. Especially if the dollar does not hold. It may not happen in a few weeks or it could take a few months but as they say, where there is smoke there is fire.
4 comments:
Agree we are due another round of correction and my bet is around similar time to last yr. The $ is one likely cause. The other is the negative feedback loop from the horrifying unemployment.
But decoupling is of course not a theory worth the paper its written on. Anymore
I'm going to be a farmer.
US$ will weaken... It is a matter of time...
There is no sign of a dollar collapse although the economy is weakening but the stock market is still holding.
Post a Comment