Just keep aside Equity, commodities etc for a while and lets see a very interesting development taking place in US$. This could be very-very positive for all kinds of asset classes in coming future. Last week US$ touched a very very crucial level of 76.5 in its index and had a little bounce ( obviously !). This was fifth time that this index touched a long term support line drawn since 2007-2008.
....Then what?, I don't understand .
OK, what may come are two possibilities
Firstly , that USD index bounces sharply on the upside and almost every asset class falls with its rise
Secondly , that USD breaks this support and fall further . This may ignite a huge surprise rally all across.
Ok , now what do you mean ?.....
do you recall QE1 and QE2 ?!
...ooooooo....those...yes...yes...yes...
They worth hundreds of billion of US$ .
Now they have started talking about QE3 !
This could lead to further depreciation of US$.
Now , guess your self.
12/2/2011