Yes for foreigners investing in US stocks it would be great for them. In the hypothetical example where the S&P goes up 20% and the dollar loses 20% against say the Euro... the gain for those European countries would not be 40% lol. You would get 20% of the S&P 20% rally. Which is another 4%... not 40% total. I suppose US investors should be hedge against the US dollar. That or just buy commodity stocks to make life more simple.
I c that some of u think that this is funny. I have been trading for awhile, and whether ur into technicals or not, Try this. Take an old Enron, WCOM, Global Crossing, MSTR, RMBS, BSC, LEH, any of these charts, and assuming very basic knowledge of occilators, put up any one u want. Take a 20 and/or 90 EMA, and put it on there as well. Look at what u c and tell me that a technician had no warning of impending doom in each and every case. I tell u this chart pattern is rare enough that I am hoping those green shoots come up damn soon. If they dont, it's a done deal.
Here's why you're getting no respect: While the last 2 years have some correlation with 73/74, it's primarily been compared to 1930/31 which was way worse. You could find 500 different metrics that "haven't been this bad since 1930" if you tried. The fact that you've found one that hasn't been this bad since 1974 doesn't really mean much everyone pretty much already knows this is a least 1974 bad already. Where did 90% come from? Some technical pattern happened and the index lost 5% more 35 years ago. Some stocks have taken than nosedive, but stocks are several times more volatile than indicies. While an index can lose 90% you pretty much have to have deflation for that to happen so your 1974 example seems kind of silly. If that weren't enough you're very arrogant. A good way to make people dislike you is to be arrogant and wrong.
And this post from someone whose handle is Communist Monkey?? Okay Anyone who warns about impending doom will b called arrogant and wrong. Until they're proven right If we actually deflate to Dow 600, well, let's hope Im wrong, I will b more than happy to b arrogant and wrong.
Well, if you continue to warn us for the next couple centuries you may be correct eventually. Many of us think the market will not return much in constant dollars in coming years. Inflation has been the primary driver of the US market in more recent times (since Nixon) and we anticipate that will continue. Who knows? We could all be wrong and you'll be a hero yet! But i doubt it.
actually i am right if you change dollar into euro, buyeuro denomiated index, the index then rsies 20 % and so does the euro, and you transfer your money back into dollar... means you just made 40%
That is basically a stupid quote since we always repeat the same mistakes. It should be "those who choose to ignore history, are doomed to be on the wrong side of the trade"