SI
SI
discoversearch

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 : CFZ E-Wiggle Workspace -- Ignore unavailable to you. Want to Upgrade?


To: Galirayo who wrote (9120)10/25/2008 5:19:39 PM
From: skinowski  Read Replies (3) | Respond to of 41420
 
is not inflation .. it's more Deflation.

No doubt about it. And cash is king. Right now your cash can buy much more SPX than it used to... Q's and other claims on the US productive capacity... more Housing, twice as much Oil. And unemployment hasn't even kicked in yet.

About the rally in the USD... I'm not sure this is the case, but I read that one of the reasons for the rally is the unraveling a carry trade which was being done against the USD - not unlike the one with the Japanese yen. The dollar, of course, paid more that the Yen, but in view of an established downtrend in the Dollar, it probably made sense to borrow it and invest in assets denominated in (what used to be) stronger currencies.

For whatever reasons, for now, everyone wants the buck.