Beware if u have a short position in gold.
The current matter of New Century Finance and other major home finance companies could not be solved easily. Many of the people cannot even pay for the interest for their mortgage, and there are millions cases for the affected mortgage. In order to solve the problem, I can see there are 2 choices:
1) US economy strengthen continuously
2) US begins to cut interest rate
(1) is very hard to archieve, and (2) is easier.
Once US begins to cut interest rate, it will decrease the attractiveness of putting money into USD. And there will be an excuse for foreign currencies and raw materials to be pushed up further.
YEN is good for the current focus and strengtheness. However, the interest cost for longing YEN is too big and we can't hold the long contract for very long time, unless YEN can rise significantly shortly. But don't try to predict YEN's future as political matter is more important than economic matter for YEN.
引用:
原帖由 ephb2 於 2007-3-13 21:30 發表
sell gold at US 650.
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本帖最後由 b4321 於 2007-3-14 15:35 編輯 ]