Yes its party time for all Dollar bulls as suggested by us in May Blog Dollar is King.
As we told Dollar Index was about to shoot up and it has. Dollar Index has jumped from 74 and it’s very much near 78. Dollar rupee has jumped from 44 to 48.Its a gala time for all our reader and regular follower of this blog way back in late 2010 we told you to exit equity as an asset class from then till now markets around the world have crashed.
Its proud moments for all of to do thumping on the table and say to the world didn’t we told worst was coming. We had cautioned our reader way ahead in 2010 that 2011 is going to be year of financial turmoil and with the blessing of lord we got it right.
When Fed declared QE2 we did told you its creating greater fools theory around the asset class. All the bubble has already busted. Now Fed is not your friend. From our sources we know that Fed has done some secret lending to many financial institutions without taking permission from public. Now fed wants to reengineer QE3.
Our ability to study credit default swaps (CDS) reveals some nasty analysis.
According to us there is 12% chance of Bank of America getting Default.
And 15 % chance of European bank Société Générale defaulting.
Keep your finger cross there something “To Big to fail “process to be under covered.
Yes you know what we are talking about. There are lots of worms within the financial systems. There are huge chances of sovereign default in Europe.
Equity markets around the world are highly oversold so do expect some bounce back in near term. Stay connected with us more insight on world economy insights.
Sr Vice President & Head Equity
witdom investment advisory.