That’s just what happened last year. Only then, it was both a dollar and yen carry trade that led to a rise in Aussie assets. Once the credit crisis set in, the yen carry got dropped and investors fled risk assets and piled right back into the greenback and U.S. Treasuries.
October 29th, 2009 | Dan Denning | 9 comments | ContinuedAll Posts Tagged With: "rebound"
Bubble Age Jobs Lost Because of Recession
Millions of people, for example, earned their money in ‘housing.’ They were putting up houses in the sand states…or building granite countertops…or selling, flipping, financing the houses.
October 7th, 2009 | Bill Bonner | 7 comments | Continued
S&P/ASX 200 Clears Resistance Line
A breakout is a clear positive signal.
This is especially valid when the resistance was in place for a long time. It means the breakout is a significant trading event and that the strength of the bullish signal triggered is high.
The second observation is that the previous resistance is generally tested just after the breakout…
September 17th, 2009 | Gabriel Andre | 12 comments | Continued
Should You Buy Stocks Now to Take Advantage of Bull Market?
Stocks and oil are at their highest levels so far this year. With such profits at hand people figure they don’t need the dollar. Investors run to the safety of the greenback when financial storms approach. But now…they think it will be clear sailing.
August 25th, 2009 | Bill Bonner | 0 comments | Continued
Is Inflation Necessary for Recovery and Growth in the United States?
It was French economist Jacques Rueff who revealed the scam more than half a century ago. The whole idea of Keynesian stimulus, he explained, was to cause inflation…which would reduce the real price of labor. In a modern democracy, politics prevents wages from falling.
August 3rd, 2009 | Bill Bonner | 0 comments | Continued
Debt Built Up to Levels Even Obama Says Are “Unsustainable”
And then, all that debt that they built up over the last quarter century is a problem. It has to be paid down to the point where it isn’t a problem. And that means the obvious thing – people have to cut back on their spending.
May 20th, 2009 | Bill Bonner | 0 comments | Continued
House Prices Down and Aussie Market Enters Second Wave of Rebound Rally
If you were drawing up a plan for your dream economic recovery, this is how you would draw it up. The weakness emerging in the Australian housing sector (the fastest decline in prices in six years) would be made up for by resurgent Chinese demand for Aussie resources, led by the first growth in China’s manufacturing sector in nine months.
May 5th, 2009 | Dan Denning | 6 comments | Continued
Is the Technical Rebound Over Already?
” Most of the market players who made quick and decent money during the past few weeks do not believe in a deep reversal trend on the markets,” Gabriel wrote. “They just took advantage of a technical rebound that already drove the S&P/ASX 200 twenty percent higher than the lows posted early March.
April 7th, 2009 | Dan Denning | 6 comments | Continued
The Outrage Over AIG and Their Bailout Money
Under pressure, AIG revealed what it did with the bailout money. It came as no shock to us to discover Goldman Sachs at the top of the list of recipients. Goldman’s main man was in the room with the feds – the only representative of Wall Street – when the decision was made to rescue AIG. What’s more, the feds’ main man at the time – Hank Paulson – also used to be the top honcho at Goldman.
March 18th, 2009 | Bill Bonner | 1 comment | Continued
The United States: The Largest Ponzi Scheme in the World
The United States is now the largest Ponzi scheme in the world. The only way to pay off the old lenders is to bring in new ones – or run the printing press. That’s all lenders have to worry about – inflation. And for the moment, prices are going down. They’ll keep going down too – until they go up…
February 20th, 2009 | Bill Bonner | 6 comments | Continued
A Pivot Point
It’s at a turning point right now. One thing your editor has learned in the last eleven years of daily market observation is that when public sentiment reaches a point of maximum anxiety, it breaks like a wave crashing on the rocks. This is not as bad as it sounds. What we mean is that though the general trend of the market is obvious-lower stock prices on a weak economy and a confused policy response to the crisis-you will often be surprised at when the rallies come and how high they go…
February 11th, 2009 | Dan Denning | 12 comments | Continued
