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ProShares UltraShort 20+ Year Treasury Message Board

  • snugly60031 snugly60031 Aug 27, 2010 11:27 PM Flag

    Oil Was Up 3%, Stocks Rallied: Correlation to Weak Bond? What about strength in Dollar/Yen?

    An interesting article someone on this board provided a link to spoke of hyperinflation scenario, and signals. Well, today we got some signals: good move in oil and stocks with bond weakness. But we also got strength in Dollar/Yen today. I have also noticed recently as the bond has relentlessly moved higher, that Dollar/Yen was getting creamed, and even hit a 15 year low earlier this week. If we were getting symptoms of hyperinflation, I would think that Dollar would continue to weaken. I don't know; maybe there was no correlation in today's moves. Comments?

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    • Look at the ICE DX contract, this contains a basket of currencies against the dollar.

    • Gold is in price what your currency is worth the dollar and euro are toast don't think gold peaked for one second looking for $2500-$5000 over the next few years if china backs its currency with gold $10000.00 .in 50 years from now usa = haiti you better learn to be mma fighter if your still around

      • 1 Reply to blackoilpeaking
      • As the USdollar and Euro weaken so gold will strengthen. Gold and silver are set to soar and the US long bond will go to 7% and more as people start to realize that the US government is running a ponzi scheme far worse than poor old Bernie. SLW and IAG are two great ways to play Silver and gold. BUT, being long TBT is not the best way to play the rise in yields as leveraged ETFs are not suitable for long term investing....It is best to open a futures account for longer term bets....The dollar and the entire system is on the verge of total collapse and no one is going to lend the US government money that they no hope of repaying.

    • My take is that the recent weakness in the dollar has more to do with the relative yields between the two currencies. As the spread narrows, it becomes more attractive to own yen (or, more appropriately, Japanese bonds) than dollars (or treasuries). As the spread widens (as it did yesterday) that trend reverses.

      I also agree that this is a short-term bounce until we get better economic economic figures. We may be approaching a floor, however.

    • everything was oversold--oil and stocks, bonds were overbought--one day correction --Monday back to normal.

    • you cannot use dollar weakness or strength against other fiat currencies like the Yen to determine whether hyperinflation is occurring. Fiat currencies are ALL devaluing against hard assets like Gold oil, and steel. Their relationships to each other mean nothing when they are all worthless.

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