Showing posts with label RATES. Show all posts
Showing posts with label RATES. Show all posts

Wednesday, September 10, 2014

What to do with the Money?!?

It seems to me investors will be facing the interesting problem of finding places to put cash. Almost every central bank in the G20 is suffering from inflation deflation or just bad economic policy/management. Europe has done the craziest shit in the world and lowered their federal funds rate to a pointless level. If you're looking for a good place to open a savings account, certificate of deposit or money market account then I'd be looking at Australian Banks as we all know they have the highest federal funds rate of any other region in the world. In my opinion a good carry trade might be worth the effort to formulate. They offer volatility, guaranteed profits when correctly performed and a chance to take advantage of another region's awesome monetary benefits while stile holding on to your physical cash, keeping you liquid in other words.  
Another option is to buy some physical gold or silver; as I've written about before, I see some manipulation in the prices of these two metals that lead me to believe there is some accumulating of these metals by large sources of cash. In other words the big boys with all the money have gotten a head start on low metal prices with anticipation of a recovery from this year's tumble from a 20 year run-up. Large cash holders are trading in their dollars for tangible assets and by doing so they are suppressing the prices and making the transaction easier as a whole to complete. Ba smart investor and recognize that the price of Silver is low while the volumes in its trading has substantially risen over the same amount of time..Hmmm more trading and ranging prices...Do  I even have to say it? Do your job, make some money.
Or you could always just try your luck at buying the right stock at the right time and reversing the transaction perfectly to earn profits, lol.

Thursday, September 4, 2014

Playing chicken with a Mack Truck

So the ECB decided to take it upon themselves to drop the Federal deposit rate to .05%. This sucks because now there is essentially no insintive to own any EUROs. We American traders should be looking at Europe with a predator's focus. After the initial slaughter of the the EUR/USD there will probably be a host of carry traders lining up to buy those poorly paying euros in exchange for some higher yielding currencies like the AUD or NZD. The USD has a poor federal funds rate as well but not nearly as pitiful as Europe's so we should see some methodical purchasing from the international client having banks soon. If you've been following my recent posts you should ultimately be profitable from my suggestion to short any EURUSD pop ups. Fly balls look like home runs until the ball starts to fall and you see just how far the fence really is. 

On another note, I went H.A.M on Tuesday and placed about 7 orders. I shorted NZDUSD @ .833 & USDCAD @ 1.09. Canadian traders took my out for a gain of 50 pips and my friends in New Zealand are earning me money with about 22 pips on my belt buckle. AUDUSD and GBPUSD have been on my radar and I won't tell you how or why until they tell me what I want to hear.