A Two Edged Sword?
Over at a financial forum...
On one side, due to the seasonal upswing in monetary flows between now and June (excepting mid Feb) would dictate that commods and equities might have bottomed.
On the other edge of the sword, the global economic contraction, less petrodollars, SWF (sovereign welath fund) pullback, resulting ED (eurodollar) squeeze and the fact that under those circumstances King Dollar could shoot the moon, causing further pain all around in a self reinforcing manner.
IMHO a large potential for downside in multiple asset markets exists.
What about all those who are divesting of dollars? UST auction demand is at its lowest since 2009 as SWF's and CB's (central banks) are selling, but with everything else taking a dump, who are they gonna call? and where are they gonna run?
That's why secondary market demand for UST's isn't really an issue. As our trade deficit widens, in need of security, which our primary export in the form of debt and dollar offer and provide, foreigners continue to support our profligate ways, only rising rates could rock that boat. TBD.
On one side, due to the seasonal upswing in monetary flows between now and June (excepting mid Feb) would dictate that commods and equities might have bottomed.
On the other edge of the sword, the global economic contraction, less petrodollars, SWF (sovereign welath fund) pullback, resulting ED (eurodollar) squeeze and the fact that under those circumstances King Dollar could shoot the moon, causing further pain all around in a self reinforcing manner.
IMHO a large potential for downside in multiple asset markets exists.
What about all those who are divesting of dollars? UST auction demand is at its lowest since 2009 as SWF's and CB's (central banks) are selling, but with everything else taking a dump, who are they gonna call? and where are they gonna run?
That's why secondary market demand for UST's isn't really an issue. As our trade deficit widens, in need of security, which our primary export in the form of debt and dollar offer and provide, foreigners continue to support our profligate ways, only rising rates could rock that boat. TBD.
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