Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (6294)	5/12/2006 1:34:12 AM
From: Taikun	Read Replies (1) \| Respond to of 217802

TJ, I heard this today "Equities sold off on the concern central banks will have to raise rates aggressively to bring commodity prices under control". Could this set us off on a period where higher commodity prices don't result in higher equity prices? I see lots of sell the news trading. Thoughts? Cheers, D

To: TobagoJack who wrote (6294)	5/12/2006 2:24:35 AM
From: Muthusamy SELVARAJU	Read Replies (2) \| Respond to of 217802

TJ and everyone else, I wonder what is your current view on the relative attraction of contra-USD currencies, i.e. CAD vs AUD vs EUR? Over the past 2 days, the EUR seems to be outperforming the other 2 above, yet it would seem, their fundamentals are in fact better with improving commodities prices than the EUR (or the USD)? Should one sell CAD (or AUD) holdings and move to EURs? Is there an explanation for this, and could China be behind this, ie buying Euros to bolster PBofC with non-USD FX reserves while, in parallel, flooding the commodity markets with its excess USDs. Also, do you think the Central Banks in China, Middle East, LatAm and selected other countries now dump their USD FX reserves for PGMs but the likes of BHP, Rio Tinto and Freeport willingly mop them up instead! I've always wondered how Bernanke, Trichet, Brown et al count the USD holdings in their CBs coffers when they are in reality, increasingly being held not by the Central Banks but by these big MNCs in tax efficient 'treasury' locations such as Ireland, HK, Caymans, etc. Selva