OTCPK:INMNF - Post by User
Comment by
goldopportunityon Feb 09, 2015 12:56am
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Post# 23409582
RE:RE:A few thoughts on next week....
RE:RE:A few thoughts on next week....Hi sailorbull -- I would be very surprised if the fed really does raise rates this year -- it would be economic suicide to do so imo. To what advantage is there to having a strong usd when major trading CBs are cutting rates which encourages increased consumer domestic spending and confidence, as well as increased export potential, which in turn leads to increased manufacturing and higher employment and lower unemployment. You, Buffet, Welsh and I and countless others probably agree on this. Which leads me to your 2nd paragraph about the forex market......
In regards to any market, one needs to consider 4 very important elements: perception, price, time and trading. All are joined-at-the-hip so to speak -- you can't have one without the other where markets are concerned. And all 4 elements are constantly in "motion". So to respond to your point that "the forex market has already priced in a rate hike" I would say yes they have, but only based on their current perception. And this perception is always in "motion" and subject to change, which in turn effects pricing, timing and trading, which also effects perception and so on. Also, forex trading contains another crucial element, margin. And forex margin will greatly accelerate the "motion" outlined above if one wants to live for another trading day.. Hope this helps. Jmvho.
goldopportunity