once economies start to recover, central banks may mop up the extra liquidity brought about by QE. They can do this buy selling government bonds to investors and in exchange for hoarded cash held at central banks or they can tighten monetary policy greatly which could then result in country debt downgrades.
The currencies of countries that have QE will greatly suffer in the LONG run against CERTAIN currencies. But note that Bank of Englands expansion is relatively more painful as it is a small currency unlike US dollar. So i expect fantastic long term bets against the pound as the effects QE may not have fully been priced in.
Ashraf, see what you mean. But it seems you are not 100% sure? Do you have the same view as Pretcher? What about interest rates? Do you see them rally up soon? (if they do, stocks will go lower). Just want to learn about your views while I am waiting for my book....
Handler, 5 or 10 years? i think we could descend into a deeper deflationary spiral in some industrialized nations w/in a year but in the longer term, inflation could become the bigger problem, hence metals are in for an extended secular bul market. Actually, even the deflationary risks due in the short term may not be punishing for commodities.
Ashraf, Regarding the question Inflation/Deflation. Can you please give me your views about the future (5-10 year forward in time). There are many different views about this. Experts don't agree about this subject. (I haven't received your book yet, so I don't know your aspect of this).
Chloe, 1.12 has proven a key resistance for some time. Friday's better than exp jobs report in Canada may help impose this resistance, so wed have to see more losses in oil and stocks (which is very plausible at this point) in order for 1.16 to be seen.
spec, Yes, market is buying option on EUR for 10 years.......but you can buy 30 years US bonds, maybe you will have a very good return in 30 years......10 years is nothing if you compare 30 years.....just do it!!! please do it!!!
Try publishing this in the UK weekend papers: Traders bet BankofEngland will raise rates to 6.25% --highest since 1… https://t.co/GWXrTEAk4R(2 years ago)
Poor start to a slow market day as Ezone PMIs disappoint. Im still keeping an eye on the rare (-2%) USD-GOLD combo,… https://t.co/UyRzWsRbs7(2 years ago)
-5% YTD is not good, while -7% from the year highs can be tough. Gold traders have their eyes fixated on this for n… https://t.co/NV5UMKsfNo(2 years ago)
ما وراء هبوط الدولار مع الذهب و من منهما يتمكن الارتداد؟
موعدنا الآن في غرفة شركة إكس أم لجلسة الأسواق
https://t.co/Y7tD0RxCS2
@XM_COM (2 years ago)
Jobless claims > 300k before next FOMC meeting would be ideal for Fed to make up for any CPI upside surprise (2 years ago)
"Cook & Eat at Home" scheme may come next to defeat UK inflation... (2 years ago)
Earlier in the week gold selloff was attributed to smaller than exp China EASING. Metal is now holding v well despi… https://t.co/ZW9cmXTPWW(2 years ago)
The currencies of countries that have QE will greatly suffer in the LONG run against CERTAIN currencies. But note that Bank of Englands expansion is relatively more painful as it is a small currency unlike US dollar. So i expect fantastic long term bets against the pound as the effects QE may not have fully been priced in.
see what you mean. But it seems you are not 100% sure? Do you have the same view as Pretcher? What about interest rates? Do you see them rally up soon? (if they do, stocks will go lower).
Just want to learn about your views while I am waiting for my book....
Regards
Ashraf
Regarding the question Inflation/Deflation. Can you please give me your views about the future (5-10 year forward in time).
There are many different views about this. Experts don't agree about this subject.
(I haven't received your book yet, so I don't know your aspect of this).
best regards
Ashraf
Yes, market is buying option on EUR for 10 years.......but you can buy 30 years US bonds, maybe you will have a very good return in 30 years......10 years is nothing if you compare 30 years.....just do it!!! please do it!!!