Yesterday's fed actions to lower the cost of currency-swap shows another trick the Fed has done to pump more dollars into the system, thereby lowering the dollar value (eventual higher inflation) and pinching the savers :(
The move can be interpreted as a loosening of the entire global monetary policy. By allowing other central banks to swap into dollars at a lower rate, the Fed allows these other central bank's currency holdings to be adjusted dynamically at a lower cost.
My take is even though stock mkt rallied, eventually it'll run into headwinds as the overall malaise of excessive debt (world, specifically Europe, drowning in debt) was not addressed.
So what can be done. Ideally buy gold and short dollar. At some point will enter into GLD (gold) as hedge against inflation and maybe short dollar by buying UDN. Will post when I take these actions. For now the covered call on AAPL is working perfectly and the probability of profiting from this trade is looking more than 100%. So maybe, will get into GLD, etc somewhere next week when AAPL covered call will be over? Not sure at this point...
The move can be interpreted as a loosening of the entire global monetary policy. By allowing other central banks to swap into dollars at a lower rate, the Fed allows these other central bank's currency holdings to be adjusted dynamically at a lower cost.
My take is even though stock mkt rallied, eventually it'll run into headwinds as the overall malaise of excessive debt (world, specifically Europe, drowning in debt) was not addressed.
So what can be done. Ideally buy gold and short dollar. At some point will enter into GLD (gold) as hedge against inflation and maybe short dollar by buying UDN. Will post when I take these actions. For now the covered call on AAPL is working perfectly and the probability of profiting from this trade is looking more than 100%. So maybe, will get into GLD, etc somewhere next week when AAPL covered call will be over? Not sure at this point...
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