While many of the consequences of stimulating economic growth through currency devaluation and cuts in interest rates are known and intended, some are not. In the case of Japan’s lost decade, for example, a depressed currency and low interest rates led to carry trading.
The dollar climbed to a four-year high as the U.S. employment rate fell to a six-year low and the economy added more jobs than forecast, bolstering the case for the Federal Reserve to raise interest rates next year.
Day trading provides the rewards of a daily dose of adrenalin along with the hopes of gaining a quick 20 pips. Sometimes, however, a longer duration perspective reveals opportunities that go beyond the intraday noise.
"We have gone in and taken the assets away from the competent people, given them to the incompetent people and said to the incompetent people, now you compete with the competent people with their money. It’s absurd.”