Dollar Down + Stock Market Up?
- Thread starter DallasTrader
- Start date
Well in Germany when it happened, the stockmarket skyrocketed to incredible highs. So is that what you are suggesting?
Yes, of course, i could not agree more. I had expected the market to go back and revisit the low and then possibly break lower, but that was before the Fed move. The 0.5 move took me by surprise, I was expecting 0.25 or none because of dollar weakness.. Now, i think as long as we remain in denial this market will remain inflation driven for quite some time. The cynic in me says until after the election. What a mess the next guy or girl is going to inherit!
Do you have an uneasy feeling that underneath it all the situation is more dire than the Fed is letting on? I mean why would they lower by 0.5 with the dollar going in the toilet? unless they are counting on: 1. the economy cooling drastically to keep inflation in check; 2. since the world is awash in dollars, central banks around the world helping to keep the dollar propped up in spite of ourselves, and 3. since private US savings is negative and corporate savings is inadequate to supply the capitol needed to keep the economy afloat, printing presses filling in the difference (or we could always sell Yellowstone to the Saudis!).
Its reasonable to be confused by the Fed move since we don't know everything they know.
We have a huge debt to finance and as the dollar weakens it would seem interest rates must eventually rise despite weakened demand for construction and mortgage money, especially since to a major extent we have decided to monetize the debt and just screw our creditors. I really don't understand why they are letting us, so far, get away with this.
1. Knee Jerk Reaction to Fed caused the market to ralley and "false" hope that the recession wil not show up, continued the rally.
2 The US Fed official rate cut, coupled with another Discount Rate cut, the rescue package measures continue to be piled on, one after the other, gold will lift higher as the dollar is forced lower, Oil will rise as a defensive play to the dollar
3. The Govt just received early approval of a lift in the official federal debt limit.
4. More risk of Stagflation to be followed by hyper-inflation as the Fed continue to pump cheap money into the markets.
The market is "covering" for the weak dollar. Not sure as to why but it seems like SMOKE & MIRRORs. However, you can't find the Rescue Package! The dollar is being pushed away, slowly, from a means to Peg. Oil. Many countries are slowly dumbing the dollar, in small amounts as not to stir panic.
The stock market has a mind of its own, does not reflect the current "Economic" situation nor the future sitution. The Stock Market has been manipulated by many sources. The average American does not watch, look at, or care about the Markets. Therefore, the Market acts like the DRUNK IDIOT who is singing "HIGH WAY TO HELL" while he drives drunk, heading for a cliff. He has no idea about the drop off ahead and its 4am, nobody is on the road to pay attention.
2 The US Fed official rate cut, coupled with another Discount Rate cut, the rescue package measures continue to be piled on, one after the other, gold will lift higher as the dollar is forced lower, Oil will rise as a defensive play to the dollar
3. The Govt just received early approval of a lift in the official federal debt limit.
4. More risk of Stagflation to be followed by hyper-inflation as the Fed continue to pump cheap money into the markets.
The market is "covering" for the weak dollar. Not sure as to why but it seems like SMOKE & MIRRORs. However, you can't find the Rescue Package! The dollar is being pushed away, slowly, from a means to Peg. Oil. Many countries are slowly dumbing the dollar, in small amounts as not to stir panic.
The stock market has a mind of its own, does not reflect the current "Economic" situation nor the future sitution. The Stock Market has been manipulated by many sources. The average American does not watch, look at, or care about the Markets. Therefore, the Market acts like the DRUNK IDIOT who is singing "HIGH WAY TO HELL" while he drives drunk, heading for a cliff. He has no idea about the drop off ahead and its 4am, nobody is on the road to pay attention.
Inflate or die
There is no measurable correlation in the direction of the dollar and the stock market. Test it for yourself.
