1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Asset Allocators Shift Money to Stocks While Shunning Treasuries

Discussion in 'Forex Daily News & Outlook' started by futuretrends24, Dec 22, 2009.

  1. futuretrends24

    futuretrends24 New Member

    Apr 30, 2009
    Likes Received:
    Today’s sample of Futures Analysis from FuturesHound.com

    Real buying returned to the stock market today as investors shifted money from fixed-income Treasuries to higher yielding equities. This is all part of a reallocation of assets. Investors are betting on a U.S. economic recovery to drive stock prices higher in 2010. On the other hand, investors are betting that the value of Treasury Bonds and Notes will continue to erode as interest rates rise.

    Today’s rally in the U.S. Dollar appears to be a sign that risk sentiment may not be the driving force behind price action much longer. The action today suggests that funds are being reallocated into the Dollar and stocks in an effort to capture a rise from the continuing improvement in the U.S. economy. The positive trade in both the stock and Dollar markets is a sign that investors are shifting back to watching traditional fundamentals for direction.

    The March Euro finished the day lower. The improving U.S. economy and lingering debt issues in Greece, Portugal and Spain are likely to continue to pressure the Euro. Longer-term charts indicate a move to 1.3800 is likely.

    Read full article at full article at FuturesHound.com as well as Futures Analysis, Futures Education and exclusive timely market Gann Analysis

    Disclaimer: Trading on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

Share This Page