Waiting for the big Kahuna Message Board

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Strategies & Market Trends : Waiting for the big Kahuna

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To: William H Huebl who wrote (67319)	11/13/2003 7:55:36 AM
From: Real Man	Read Replies (1) of 94695

Yeah. But are you sure it's not good? -g- Unless derivatives blow up, these markets will remain disconnected. I mean, rates will fall and stocks rise as the dollar drops. This is totally against any fundamentals, but... When you short the dollar, you get long rates futures as a hedge. When you get long bonds, you short the dollar as a hedge. That's the opposite of how bonds and the dollar moved a decade ago, when the derivative market was not nearly as huge as it is now. Back then, when you sold USD bonds, you sold the dollar, automatically. I don't know when this cycle breaks. Perhaps, when we get a meltdown?

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