Traders must be very cautious in this newly found goldilocks
environment, as it may end sharply at any time. I think more
goldilocks, dollar rally, and commodities dump etc. next week,
as this is the week of TAF. I'll be buying gold stocks into
the mess, since they are very undervalued relative to gold.
I've decided to
dump GM and F shares into the rally, it may be too early to
accumulate manufacturers, and I don't like what the Fed has
been doing. This seems to be a destructive path of blowing bubbles,
etc., saving the system at any cost, which ultimately could
lead to a complete meltdown of USD. GM and F may go up in USD
terms, of course. The Fed's current approach is to ignore
the dollar weakness, or manipulate. It won't work. Monetizing
bad debt? Gulp! They are essentially stuck with a big
problem with no solution. As FX volatility comes down,
USD will too, as a result of carry trade coming back.
FWIW, other major CBs, the ECB, etc. seem to be more responsible. |
