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

To: TobagoJack who wrote (72798)	4/5/2011 9:35:02 PM
From: carranza2	2 Recommendations Read Replies (2) \| Respond to of 217801

H gets it. There will definitely be a pause in QE after it ends in June. Things will correct in a very nasty way as liquidity evaporates. The Fed will of course then re-instate QE when interest rates go up and equities get slammed and the supporting rug is pulled out from under Treasuries which will be at the same time undoubtedly also be pressured by Japanese fund repatriation. Rising rates are a given, at least for a while. And who can say what rising rates can do to the precariously perched Europeans, but I know it not good. Fed is between a rock and a hard place: QE is unpalatable politically, hence it must make a show of stopping it before it starts it up again. The period during which it is absent will provide great opportunities. I may well start booking profits in metals and miners as June approaches, then re-purchase old positions as they tank after the pause in QE. Or not, for no one knows how substantial the drop will be or how long it will take for the highs we are seeing to be reached again. But let's not forget one thing: the derivatives market in interest rates is huge, spectacularly huge. A termination of QE in June will potentially cause havoc in those markets, the kind of havoc that could send tremors through the financial system. The wise thing to do might well be to get into Swissies or something like that to weather the storm. And TBT's time may well have arrived, finally. Ah, decisions, decisions.....