Tuesday, October 27, 2009

Is a Stock Market Correction and a Dollar Rally on the Horizon?

With the Fed's $300 bn quantitative easing program for Treasuries coming to an end in October, there is a real risk that Treasury yields will increase (and their prices will fall), choking any nascent recovery in the U.S. economy. So is the Fed about to engineer an equity market correction and generate a fligh-to-safety trade in treasuries? We certainly think so.
Is an Equity Correction and Dollar Rally Looming? Bill Gross Thinks So...

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