Dollar gets cover treatment | stockbee


Dollar gets cover treatment

The magazine with no bylines and anonymous editors feels the dollar panic is unwarranted.

So far, this remains only a fear. Although the dollar has been falling at quite a lick—down 6% against a trade-weighted basket of currencies since August—it has seen no chaotic slump, but a slide interspersed, as this week, with brief rallies. Americans' expectations of future inflation have not yet risen much. Yields on government bonds have fallen: clearly, investors do not yet expect higher premiums for safe American assets. Whether disaster strikes depends on what exactly is driving the dollar down and on how policymakers react.


qt said...

So does this mean we can contrarily expect the dollar to continue it's fall?

F-Trader said...

You posted the Economist mountain peak picture cover as they correctly called the top of LBOs and the credit markets. This system only works if you're an insider.

If you've been holding 1,000,000 shares of stock XYZ for years and then positive news comes out on magazine covers, all of a sudden there is a market for it and enough liquidity for you to get out.

Otherwise, it's not a tradeable or reliable signal. They are just speculating like everybody else.