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Wednesday, December 17, 2008

Dollar Carry Trade Version 2.0

I detailed just over a week ago that I was not bearish on the dollar long term, but...

I do think some / a lot of the move we've seen over the past few months was largely due to the deleveraging of global investments, and I do expect that to reverse in the coming months.
And here we go...

I actually see this as a positive sign that global markets are returning to some normalcy. When interest rates are practically zero and the printing press is in the process of being warmed up, investors SHOULDN'T WANT TO INVEST in the dollar.