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Strategies & Market Trends : SiliconInvestor All Stars Forum

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To: KyrosL who wrote (1562)	11/30/2007 9:36:28 PM
From: SouthFloridaGuy	of 1718

Positives: Highest real rates in world (8.5% real, 13% nominal, vs. 1.5% global real yield and 1% in the U.S.) Still higher interest rates (possibly) AAA-rated security US rates sure to continue falling, pressuring currency and making higher yielding investments more appealing Strong technical chart Negatives Less liquid Carry-trade currency Trade duration: At least one year as the U.S. continues to lower rates one can pretty much buy a sack of sh!t and probably make money on it so long as it isn't denominated in $. With that said, I do think the $ can rally against the EUR and GBP given that the market has over-estimated those nations resilience. AUD is also a decent bet, it's more liquid, but you don't get paid as much. Australia also has a housing bubble and there may be more correlation to the US slowdown. Australian yield curve has been inverted so rates may certainly fall there as well, thus impacting the currency benefit.

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