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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (18093)	4/5/2016 12:37:16 PM
From: John Pitera	2 Recommendations Recommended By Davy Crockett roguedolphin Read Replies (1) \| Respond to of 33421

USD appears to be set up for a rally. Central banks in Australia and a few other commodity countries fret about larger rally in their currencies.. AUD up from 68.24 to 77.28 since late Jan. the USD/CAD has moved from it has overshot in each direction recently... this reinforces El-Erian's thesis that volatility is increasing in the risk asset markets. USD will rally against CAD as we have a double momentum divergence... a reversion to the mean and as crude has been heading back down in price. John

To: John Pitera who wrote (18093)	4/5/2016 2:18:15 PM
From: Hawkmoon	4 Recommendations Recommended By Davy Crockett John Pitera roguedolphin sixty2nds Read Replies (1) \| Respond to of 33421

Here's a point I've been thinking about.. If I were actually paid to take out debt, say $1 million, at a negative interest rate, why would I want to invest in anything? Wouldn't I just prefer to hold the cash, rather than assume addition risk of not being able to pay it back by speculating in some other investment? Just hold the cash, and if rates go even more negative, couldn't I pay back my existing loan, and then take out another at the new negative rate? NIRP is going to screw up the entire financial system, IMO.. Hawk