Its becomes cheaper for investors holding other currencies to buy $US denominated assests like Dow stocks - its not 1+1=2
wrong again. The dollar has actually risen 30% since June 2008 while the fed has been slashing rates and infusing liquidity. Also, the a falling dollar isn't the same as inflation. A falling dollar means that it costs more to buy good overseas. A lot of people equate a falling dollar with less purchasing power, but that isn't always the case.
Why would people buy assets in a deflationary enviormemt? And why would they buy American assets, anyone with half a brain sees where this country is going!
[QU The only way i would have a done a long swing trade here is if the chart told me that today was actually the weekly and even almost monthly low. I bet it's down around 820 tommorrow or next week. Thats where it's last range was and all of last couples days prices were artificially manipulated. Remember during the bailout the market was loving it? Once the bailout passed everything went back to reality. Same exact thing here. The chart definitely looks like it will go down further. I think the possibilities for price hitting a new low is unlikely but man it definitely has more ways to go. Bad idea. [/QUOTE]OTE]Quote from NeoRio1: What the hell are you jabberiing about. No real trader would gloat. Any trader worth his salt has been there. Get lost.
bxtone, While I agree with a lot of what you say (and your analysis of the ape stock_trad3r), you have to tone it down a bit with the profane attacks. Thanks.
S&P at 900 and DOW at 8840 as I type. Now is the time to buy the short ETF's. By Friday, You will be 5 to 10% up. There may be another opportunity tomorrow if Treasury comes out with a bailout for Autos.