... there's no denying that major trend changes are now afoot re US stock/bond markets, worldwide stock/bond markets, currency exchange rates etc. In the interest of any DD readers who may be invested in US stocks & bonds, and who may be affected in a major way in a short period of time by these trend changes, I would call for the experienced and savvy investors here at DD to post their opinions as to where things are likely to be headed in the near term ...
In my own opinion, the fate of the US stock and bond markets next week is entirely dependent on the willingness of the US Fed to continue printing up yet more billions of new US dollars out of thin air and channelling these newly printed dollars into the US markets via the primary dealer banks. My guess is that the US Fed will attempt to keep printing and pumping next week in order to continue propping up the 'house of cards' US markets through options expiry at the end of the week.
This may work. However it's just as likely foreign investors in US stocks/bonds will see the Fed's massive dollar printing as only causing further losses on US stocks/bonds in their portfolios in terms of their own home currency. A 'race for the exits' could easily develop by wednesday or thursday of next week that could cause a MAJOR market decline into friday's option expiry date. Because of this rising risk I have already sold off my 'long' US stock and bond holdings and have been mostly sitting in cash expecting a significant US market decline.
I have also made a high risk 'contrary' bet i.e. buying shares of UVPIX early last week (right after Morgan Stanley released their triple sell prediction). I am actively watching the US$ exchange rate vs the SwissFranc/Euro, and am prepared to move some of my surplus US dollars into an EverBank EuroTrax CD at the first sign the US$ exchange rate is turning downward again.
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