Market Tips: Why Dollar Must Decouple from Stocks
The dollar dived to a 13-year low against the yen on Friday after the U.S. Senate failed to agree a bailout for U.S. automakers, raising the prospect Japanese authorities may intervene to stem the yen's rise.
US Markets & the Dollar Are Decoupling?
The U.S. stock market fell and the greenback weakened in Thursday's trade, indicating decoupling there. James Falkiner, director & CEO of Falkiner Global Investors thinks that fundamentally, that is a positive sign.
Volatility is Going to Continue
The volatility is going to continue, says Raymond Kong, regional CEO of OSK International Asset Management. In light of this, he tells CNBC how he has positioned himself in the markets.
Weakness in the Dollar Unlikely to Last
The dollar will probably remain under pressure for the remainder of December, says Jeffrey Halley, senior manager of FX trading at Saxo Capital Markets. But he tells CNBC that this is only a temporary blip in the overall trend.
The Yen's Gaining Strength
Physical Bank of Japan intervention may be made in the next few days if the yen strengthens to 90 against the dollar, says David Mann, FX strategist for global markets at Standard Chartered Bank.
Bonds Over Stocks in 2009?
Bonds will outperform stocks in 2009 because they are discounting a far worse scenario, Rob Drijkoningen from ING Investment Management told CNBC.
S&P Sideways Trading to Last a While
Paul Nolte from Hinsdale Associates sees the S&P 500 to remain in the 750 – 950 trading range until the end of next year's first quarter.
The 2002 and 2008 charts for the S&P 500 index are extremely similar, according to Royce Tostrams, technical analyst at Tostrams Groep. He sees the index trading in a sideways motion for a year.
When looking at the two charts, Tostrams notes that after the index lost 50 percent since the previous year and hit a low in the 700 region, it traded sideways.
"I don't expect to show a bullish picture in the next 12 months. I believe it will have the same market as six years ago, let's say a sideways trading range," Tostrams told CNBC.
"The conclusion is a 'buy' and 'hold' strategy is dead," he said, adding that investors should only be in the market for a short time as it will be "a very, very difficult market for long-term investors."