Tuesday, September 2, 2008
The U.S. $
The U.S. $ is rallying. I have been a U.S.$ bear for YEARS, but I don't fight what my eyes see. The economies of the other currencies are in much worse shape than we thought, and the $ is rallying relative to these currencies as a result. Why this should be so hard on the precious metals is unclear to me, but it has been and that is that. As a store of value, my money remains on the metals rather than the currencies.
Things change, markets change, data changes, and you must accept it or lose money. Fighting counter trends is a sure way to a short, very unproductive and unhappy career in the markets.
The funny thing is, Bernake is getting credit for this. There are, and always will be, unintended consequences and outcomes as a result of many variables. Often, we have no idea "WHY" until months or quarters, and sometimes years, later.
This is still ALL about oil. That does not mean oil will always outperform every other commodity, but it is ALL about oil. Keep your eyes on the data.
Mentatt (at) yahoo (d0t) c0m
Posted by The Short Story Man at 1:04 PM