Thursday, January 17, 2008

The Bernanke Signal

If you haven't noticed, Bernanke has turned into a Forex signal.

The market will rise, anticipating that he'll say something useful, or helpful, but then he actually starts speaking and we get a precipitous drop in prices.

Of course, when rate cuts are announced we will get a momentary spike, but it will only be lasting if the rate cuts are deeper than the market has already built into prices.

Keep talking Bernanke, I've got a short position!

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