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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: John Vosilla who wrote (81239)4/27/2007 2:02:00 PM
From: orkrious  Read Replies (3) | Respond to of 110194
 
No, they won't like that nor will they like a sharp up move in the dollar to near 90.. The trigger for a global stock market selloff is right here in this post. No need to go anywhere else. KISS works all the time

for the last few years the market has rallied when the dollar has been weak. so if we get a dollar bounce the stock market is likely to get hit.

but at some point the weak dollar isn't going to be good for stocks. the dollar will be too weak. looking at the bond market today, yields are up AND the curve is steepening. this despite economic weakness. we could be seeing the beginning of the end of this weak dollar/strong market phenomenon.

I suspect gold will do well either way. bob hoye called it right the last time we had a big dollar rally - gold was strong. he thinks it's going to happen again.