Last weeks 3 day market slide turned out to be just a minor correction. The S&P 500 has broken the 1100 barrier once again. The US Dollar has resumed its downward trend.
High yield bonds should follow the up move shortly.
Since the world currencies are the focal point of the current market it looks like gold should be included in more agressive portfolios.
Hi Steve: I am in New York (naturally, I have a cold...hate those airplanes). I hope you and Sandy and rest of family have a nice Thanksgiving. Going to Greenwich again.
ReplyDeleteHey, how about that South African Rand? I don't know how this works, but if you can borrow at below 1% and get back 5.79% for 3 month note, sounds like the guys with big bucks have an easy way. Must be a downside, right?
This is called a carry trade. If the Dollar Strengthens the trade starts to loose money.
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