Curiously enough the U.S. dollar caught a bid at the expense of the euro, yet only short-dated U.S. Treasuries appear to have been bid up. This could mean a bomb is about to be detonated. Were the likelihood otherwise, then longer-dated U.S.Treasuries, or corporate debt, or equities, or even gold might have seen more positive action on account of capital's flight from Europe starting late last week. Not that money parked in short-dated Treasuries couldn't be promptly moved into these other investment alternatives. Yet that these were not the first choice and instead short-dated U.S. Treasuries were bid at the very least speaks for razor thin confidence, righteous though this be in the midst of trapped central banks and tapped sovereign treasuries straight to the core of the trans-Atlantic banking system.
* * * * *© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.
Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.
Nothing is set in stone. Nor is the stock market's path of least resistance always known. More often than not, there are no stock index option positions recommended.
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