Double Dip

  1. 834 Posts.

    Anyone been following the Stephen Roach commentaries on the likelihood of a double dip with the US economy??.

    There are a lot of danger signs out there at the moment. US$/CHF has broken support. (CHF is a safe haven currency) Gold is obviously on the march...Generally the $US is under heavy selling pressure as investors are pulling out of the US before the currency fails. The stock market over there is going to be an obvious casualty of all this as the assets are sold down and repatriated to offshore countries. Roach from Morgan Stanley put the US$ overvalued between 20-30%!! If there is another terror shock there will be a nasty fall in my books with all this building up on the sidelines...

    I would not expect the Aussie market to get off scott free as our dollar appreciates and puts downward pressure on our corporate earnings.

    Anyone got a downward target on the ASX200 or Ords?

    Short Sur`ge
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