Twisting By Bill Poole

Bill Poole just threw a wrench in the works and knocked the market down as he tried to dampen expectations for a rate cut.

As I write this the market snapped back a hair off it low and while the reaction was swift it was not that big–unless the other shoe drops in the last few minutes.

I am torn between the goal of staving off recession and my concern that the dollar decline could move a little faster than the market can handle comfortably.

No answers here just a little conundrum to close out the quarter.

7 Comments

  1. The talking heads on CNBC are speculating that fund managers will take the market back down, now that the quarter is in the books. Who knows what the catalyst could be?

    Reply
  2. Word on markets is they will drop them starting Monday and create another panic. Bonuses need to be worked upward for the next quarter.

    Reply
  3. I think the most worrisome thing as you said is the freefall of the dollar. The Fed’s hands are locked by the subprime cleaning, the ECB’s hands locked by the german rising inflation. The only way out seems an intervention, probably coming soon. Should the USD decline to 1.45, what effect do you foresee on US equities?
    Felix

    Reply
  4. printing 1.42 as it is, 1.45 EURUSD is not the thing for now. right now I think USDJPY is more important because of what the yen funds.

    I have NOK exposure with 2 year Norwegian govies, the dollar drop there has been more alarming than the Euro. The loonie I think is more important too, now below parody.

    Where the euro is concerned i think velocity matters more than absolute level.

    Reply
  5. Roger
    Which currencies do you think will rise the most against the dollar, & how does one make an investment in a coupleof them?

    Reply
  6. “The loonie …is …now below parody.”

    ROFL!

    Reply

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Twisting By Bill Poole

Bill Poole just threw a wrench in the works and knocked the market down as he tried to dampen expectations for a rate cut.

As I write this the market snapped back a hair off it low and while the reaction was swift it was not that big–unless the other shoe drops in the last few minutes.

I am torn between the goal of staving off recession and my concern that the dollar decline could move a little faster than the market can handle comfortably.

No answers here just a little conundrum to close out the quarter.

Submit a Comment

Your email address will not be published.

WP-SpamFree by Pole Position Marketing