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Re: None

Wednesday, 11/04/2009 3:57:42 PM

Wednesday, November 04, 2009 3:57:42 PM

Post# of 214
RE: CARRY TRADES

Gold, Long dated Bonds, Stocks et al are all relatively highly priced.

With near zero UK and US base rates carry trades would appear to be being widely employed, selling the dollar to buy any form of risky assets.

As the dollar declines that adds to the gains of the carry trades.

But when the dollar reverses they'll be lots of selling on all fronts (stocks, bonds, gold) to cover the highly leveraged shorts.

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