Answers: What Does the Dollar Mean for Stocks?
By Todd Harrison May 12, 2009 9:30 am
The greenback dances at a critical inflection point.
- While details have yet to be released regarding the "tax increases on securities dealers and life insurance companies," isn't it tough to paint this with a bullish brush?
- Particularly following a 147% rally in the bank index?
- Do you see the dollar breaking DXY 83?
- And understand what that potentially means for asset classes?
- How much patience do foreign holders of dollar denominated assets have left?
- More importantly, how will that manifest?
- A seismic currency adjustment?
- Geopolitical strife?
- Double secret probation?
- Will the greatest trick the Devil ever pulled be a lower dollar and lower asset classes?
- Newbie Minyans-to appreciate where we are, can you please take the time to understand how we got here?
- Have you clicked through those links-and these, for that matter-as a (helpful, free and humble) guide in framing the historical juncture we're at?
- For isn't financial education a process rather than a point?
- Did our government succeed in buying the cancer and selling the car crash?
- Nothing comes for free?
- Are you watching the tick-by-tick price action in Bank America (BAC) given it's been such a super intraday tell of late?
- Are you still in the game after a 10% move either way?
- Was it a coincidence that Yahoo (YHOO) was quietly up 4% the same day Microsoft (MSFT) tapped the debt market for the first time in corporate history?
- Does your time horizon sync with your risk profile?
- When is the last time you smiled so hard that your face hurt?
- Will late-to-the-party bulls soon be channeling Marsha Marsha Marsha?
- Why do I have peppers on the brain?
- Can there be any doubt that the globalization sword swings both ways?
- Has Memorial Day snuck up on anybody else?
- Societal acrimony? What societal acrimony?
- IF you're using S&P 950 as your ursine backstop, are you allowing room for a lift to that level to set up a more advantageous (defined) risk-reward profile?
- If everyone is of the mind that any pullback will be a pause that refreshes, does that mean we either A) don't get a meaningful pause or B) the downside move will be entirely more violent than a pause?
- Did you see on yesterday's Buzz that I covered a slug of my downside market exposure with one eye on Turnaround Tuesday and the other on "letting it out" anew?
- All the while conscious that starting next Friday, I'll be enjoying my first vacation in a mighty long while?
- Are you viewing your P&L as an independent entity each trading day?
- In other words, are you conscious of the risks associated with trying to make up for lost ground with one big swing?
- Finally-and by far most importantly-are you truly grateful for what you have rather than spending your time lamenting about what you don't?
No positions in stocks mentioned.
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