subject: Market Timing The Looming Dollar, Bond Market And The Pound Crash! [print this page] Author: Ahmad Hassam Author: Ahmad Hassam
A clear preciptous and historic US Dollar crash stares ahead. All signs are pointing towards a US Dollar (USD) crash with USD already down by one third against most of the major currency pairs. Many analysts are giving USD a strongly bearish rating.Even Warren Buffet is on record with the comment that frentic spending and money creation will trigger a currency destroying inflation that would be much severe than that happened in 1970s. Inflation is for sure going to plague the economy for many years. In such inflationary times, it is investors try to take refuge in gold.There is a danger that the US Treasury Bonds will sharply fall in value driving the long term interest rates high and delaying the US economic recovery with it. The long term interest rates are still low. So, if this does happen, there will be come time lag before the medium and long term interest rates start rising.The causes of the US Bond marker collapse is the ballooning of the US Budget Deficit. Huge bailout of the private sector and big banks by the FED is also putting a lot of pressure on the bond market. So if you are in long term bonds markets, it's time to get out.UK is also facing a lot of pressure on its Pound. UK economy was the second most hit economy after US in the recent recession. Many UK banks and mortgage companies went belly up in the last two years. UK government had to devise a bailout package for these banks and companies. This bailout package was somewhat different than what had happened in US. But Pound is also facing a lot of downward pressure. British Pound (GBP) was successfully attacked by George Soros in 1993. This shows that the Bank of England has a limited capacity to defend GBP. This downward pressure on GBP can start a gradual downtrend in GBP.USD and GBP in the downtrend with the bond market crash likely meaning market timers getting ready for action to make their killings in the market. This is what Market Timing is all about. Watching the different markets. Timining your trades with the start of a new trend in the market and riding it till the end for maximum profits.If you can ride the USD and GBP long term down trend at the righ time, you can make a lot of profit. In the same way as market timer if you ride the downtrend in USD, it would be a good idea to ride the uptrend in the gold market as both these positions hedge against each other. Market timing is the trading strategy that will make many traders rich in 21st century. Learn the art of market timing! About the Author:
Mr. Ahmad Hassam has done Masters from Harvard. Get these 3 FREE Investing Report, The Ultimate Investing Test, The Best Investing Lessons and A Hedge Fund Manager's Best Advice & discover a Stock Trading Course that can make you rich in 2010. Get this Ultimate Swing Trading Software FREE!
