Tuesday, October 20, 2009

more or less

Niall Ferguson speaks. the world cringes.

"there has been no stock market rally. the stock market rally is a money illusion rally because the dollar's depreciation has negated all the appreciation of the S&P 500 since march, more or less."


now without doubt the reemergence of Dollar liquidity has done wonders for markets all over the world, but the Dollar index is down about 16%, while the S&P is up 60% since the March lows...

we expect more than gross counter-factuals from a Harvard professor...or perhaps not.