Asset prices,and particularly those priced in $,are vaporising at an alarming rate.Balance sheets and the entire financial industry is probably technically insolvent ala FNMA/FMAC.Their is a credit crunch globally and no liquidity.Domestic institutions have a huge need to bring $ home as they are short cash,hence the constant bid for the $.
Who knows when the trade ends,but what do you want instead-£(yuck),yuan/yen,roubles(pass),perhaps the euro(but Italy,Spain,Ireland crashing whilst the French are...interesting!).
Me,I hold 3mth bills,cash for personal use,have no mortgage or debt,and a 15% position in Gold(been in the latter for ages,which I will pass on to the kids).Mining is my only stock exposure as I like the story.Also, to be a successful market investor you need to be a genius and/or an insider.I'm clearly neither! |
