As leveraged assets go down in value, the leverage multiples go up. Adding to that multiple is the falling dollar and the fact that these assets are in reality debt deposits, not cash deposits, that were passed on in different forms to be leveraged over and over.
It's true Continental Airlines (CAL) has rallied 200% in recent weeks, but it's hard to argue with Toddo's logic: "Airlines didn't make money with crude at $50, $100 or $145 and until they demonstrate an ability to execute at any level, I'd be careful with them as an investment."
Lest you strain to find another anecdotal reason for the bottoming dollar thesis, Toyota's (TM) considering exporting US-made trucks. Toddo think that, ultimately, this could be a good move for the automaker.
In the Buzz & Banter segment, Toddo talks about a potential turnaround Tuesday for... as American Express (AXP), Transocean (RIG) and Weatherford (WFT)
Will Apple (AAPL) leave the book-reading space, until now the province of Amazon's (AMZN) Kindle, untapped? Will we start seeing iPods that perform this function?
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