Go to the Amazon.com link below for TIMING THE MARKET by Deborah Weir (Wiley, 2005).
Email: DebWeir@WealthStrategies.bz
Take her class at the NY Institute of Finance: nyif.com/courses/fimk_1014.html.
Wednesday, May 10, 2006
Our weakening dollar will make our exports cheaper. Large cap stocks will benefit.
4 comments:
Anonymous
said...
Deb,
The Fed seems to be raising rates with their left hand while injecting liquidity (increasing the money supply) with their right. What's going on here? Do you think they are trying to "manage the dollar down" because they know how highly leveraged this economy is? How can they claim to have inflation under control with gold, oil, and commodities booming??
Dear B., Last summer the Fed told lme that they were worried about consumers' leverage. They are trying to raise rates slowly enough to take the froth out of the housing market without causing a recession. D.
Well, it's nice to know that the Fed is at least concerned since they've been the chief architects of this colossal credit bubble. There's more than froth in a lot of these housing markets . . I'd hate to be Bernanke, he either kills the US credit party or supports the dollar. I think they'll look to let the dollar devalue in a controlled way. In other words: they are looking to inflate their way out. Thay may drive nominal stock prices up, but that doesn't mean the gains will be very good compared to the inflation they may unleash. I think the last thing he wants is an inverted yield curve and a "cleansing recession." It feels like one of those wobbly Dr. Seuss piles you see in The Cat in the Hat or Yertle the Turtle . . Do you think that's why people have flocked to gold?
I think people have bought gold as a result of higher oil prices. The oil patch raises their prices whenever the economy is strong enough for them to get away with it. Then they pull back just before we develop alternative energy sources.
4 comments:
Deb,
The Fed seems to be raising rates with their left hand while injecting liquidity (increasing the money supply) with their right. What's going on here? Do you think they are trying to "manage the dollar down" because they know how highly leveraged this economy is? How can they claim to have inflation under control with gold, oil, and commodities booming??
B.
Dear B.,
Last summer the Fed told lme that they were worried about consumers' leverage. They are trying to raise rates slowly enough to take the froth out of the housing market without causing a recession.
D.
Well, it's nice to know that the Fed is at least concerned since they've been the chief architects of this colossal credit bubble. There's more than froth in a lot of these housing markets . . I'd hate to be Bernanke, he either kills the US credit party or supports the dollar. I think they'll look to let the dollar devalue in a controlled way. In other words: they are looking to inflate their way out. Thay may drive nominal stock prices up, but that doesn't mean the gains will be very good compared to the inflation they may unleash. I think the last thing he wants is an inverted yield curve and a "cleansing recession." It feels like one of those wobbly Dr. Seuss piles you see in The Cat in the Hat or Yertle the Turtle . . Do you think that's why people have flocked to gold?
I think people have bought gold as a result of higher oil prices. The oil patch raises their prices whenever the economy is strong enough for them to get away with it. Then they pull back just before we develop alternative energy sources.
Deb
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