The Dude

Holding Multinationals? Look Out for the Rising Dollar

I dont think there is any evidence that the dollar is in a long downward spiral. Things are very negative in this country right now for many good reasons. We suffer from a lack of leadership and our government spends far too much money. Of course this results in excessive national debt which will result in more borrowing which will result in higher interest rates. The higher rates will help prop up the dollar. I think as Europe goes through their coming recession the Euro will be tested. In bad times are all those countries willing to stay together? The countries will come out of their recessions at different times and it will strain the Euro tremendously. As long as commodities (particularly oil) is denominated in US dollars the dollar will always rebound ahead of other currencies.

Short Financial ETFs: Watch Out for the Fannie/Freddie Effect

If I am long in SKF should I hold or sell?

Short Financial ETFs: Watch Out for the Fannie/Freddie Effect

SKF is to be avoided this week. October and November calls may be a good buy as the Fannie/Freddie news wears thin and people begin seeing that this is not the nirvana many think it is. Watch the bond market over the coming week to see the relevance of this news and then act accordingly.