“The sky is falling! The sky is falling!” I exclaimed.
My friends looked at me like I’m Chicken Little as I raised the alarm bells, yet again, on signs that the markets are showing signs of a collapse.
“That’s what you said the other time, and my inverse ETFs are still in the red,” Leon casually rubbed it off, as they went on to talk about how their tech stocks are up around 30 per cent while some other sectors are down. To be fair, I never knew about or advocated for inverse ETFs, and Leon acknowledges that it was his decision based on my suggestion of “reducing exposure to riskier assets or doing a hedge”.
“No, you guys are not hearing me! The dollar index and bond market (DXY and TLT for me) have both reversed bullish, and have crossed my threshold. I’ll be going more risk-off if these two close bullish on the Weekly,” my voice gradually drowning in the optimism of a pullback that will push higher.
So What’s The Big Deal With The Dollar And The Bond Market?
The US dollar index, DXY, is “a measure of the value of the United States Dollar (USD) against a weighted basket of currencies”. Some people…
