Pascal
03-19-2015, 01:03 PM
Market is drifting lower today.
I believe that it is linked to the weak Euro/US$.
The question is why this behavior. The Fed told us no rate increase. Hence, the US$, which had anticipate a rate increase broke down, but it is now coming back.
So, I think that the underlying story is slightly different than just no "rates hike soon." The story is the environment is weakening and inflation is decreasing. Cash might be pulled from the markets. Maybe by investors or by the Fed itself.
Anyway, a high US$ will bring the story of decreasing earnings for international companies.
Pascal
290552905629057
I believe that it is linked to the weak Euro/US$.
The question is why this behavior. The Fed told us no rate increase. Hence, the US$, which had anticipate a rate increase broke down, but it is now coming back.
So, I think that the underlying story is slightly different than just no "rates hike soon." The story is the environment is weakening and inflation is decreasing. Cash might be pulled from the markets. Maybe by investors or by the Fed itself.
Anyway, a high US$ will bring the story of decreasing earnings for international companies.
Pascal
290552905629057