Seeking Alpha

Simit Patel's  Instablog

Simit Patel
Send Message
I possess 10+ years of trading and investing experience, with a focus on precious metals, currency, energy, and technology markets. My decisions are based on market cycles, valuation metrics, technical analysis, and industry-specific trends and technologies. I typically hold positions for... More
My company:
InformedTrades
My blog:
Forex Trading Journal
My book:
Wealth Management in the New World
  • Are We Getting Closer to Decoupling? 0 comments
    Nov 18, 2009 4:21 PM
    Decoupling is basically the idea that the global economy will change in the sense that it will no longer be driven by US consumption. Instead of the rest of the world lending the US money so that the US can buy their products/services, countries will invest in their own consumption, and the US will lose its inflow of capital.

    Or at least, that is the story. Decoupling's most prominent proponent is likely to be Peter Schiff, who has been forecasting decoupling for several years now.

    Is decoupling going to happen?

    One piece of evidence supporting the notion is that market correlations in the US are changing. For instance, today (November 18, 2009), was a day in which US equities and the US dollar both declined in value, while precious metals rose. If foreigners stop financing the US economy, this is a trend that will continue.

    For those who believe, as I do, that decoupling is increasingly likely, the opportunity is in shorting US dollar-denominated assets.

    Disclosure: Short US dollar.
    Themes: decoupling
Back To Simit Patel's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • chart analysis of $txn (texas instruments) http://bit.ly/c5fVEh triangle pattern forming, mkt consolidating
    Aug 12, 2010
  • coca cola chart ($ko); potential oppty to short at 59.40? if candlesticks confirm IMHO. http://bit.ly/c7yQQS
    Aug 11, 2010
  • hutrade shares intermarket analysis; concludes major reversals imminent. nice tech analysis here: http://bit.ly/avzcMv $es $spy $dx $tlt
    Aug 11, 2010
More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.