I have to agree with you this time. The dollar direction is more important right now. Whenever you have a unstable currency, nothing else is stable, which means nothing long-term.
See how low they will push the dollar. If it really breaks the range, it will go much lower, which in turn will cause a lot of problems later.
This move is a bailout move for the Fed to save something. Something must be wrong somewhere. Last year when all Asian's markets melted, Japan's was relatively stable, now is the opposite. This means to me that whoever made bets that time have to square their positions. Today's action either help or cause more problems ( my side on more problems).
See how the world's markets play tonight. Stay where you are is probably the best idea.
I only have the experience with Fed intervention on currency, it is really hard for me to tell what will happen. Still, this might be a trap, but you have a lot of time to make decision for sure.
BTW, about this year's Nobel's price. It went to a real nonmathematican, compared with last year's. See how quick people flip their minds. At least, Professor Sen will not lose the money in the market for sure, probably will not use in a useful place either. |
