I think the magic here is that Bernanke knows he does not need QE3, all he needs to do is keep saying "we remain accommodative" and the market immediately tacks on 100 Dow points.
These instruments aren't meant for buying and holding. If you seriously can't touch the money that is in this position, then you are going to be pretty unhappy in the future.
I agree with Bishops sentiments. You should not be holding for long periods of time in these kinds of instruments. I have a feeling you bought on some of the "advertising" of them that was done on here not too long ago, making it sound like huge gains were imminent on a reversal.
I think he meant it's probably an IRA account ( just guessing? ), but I agree with you 100%.
Looks like we just had one. Great call as usual!
Bernanke Speech Eyed
Mon Mar 26 05:55:36 2012 (EDT)
Currencies were relatively quiet in Europe - until all three major components of Germany's Ifo survey came in fractionally ahead of consensus expectations. The surprises were marginal but enough of a relief after last week's extremely disappointing PMI report. The euro got a brief boost in response - and then heavy euro selling hit without any obvious trigger.
The last week of Japan's fiscal year is now well underway, and anticipation is already building that the crossover to the new year will prompt a resumption of the five-week-old USDJPY rally. Softer-than-expected US housing data on Friday forced USDJPY sharply lower, although we see this as only a temporary setback for the pair. What happens in the very short term will depend in large part on what Fed Chairman Bernanke has to say later today when he offers "A View from the Federal Reserve". Generally firmer US economic data would appear to justify a more upbeat tone, although we would caution against expecting a decisive shift in Bernanke's thinking. A total of eight other FOMC officials will also air their views this week. Whether mainstream Fed opinion has already begun to shift materially is still an open question, but we do expect Fed-BoJ policy divergence to become more pronounced in coming months. We remain alert for additional BoJ easing via the APP as early as next month - possibly coinciding with the release of the bank's next Outlook Report on April 27. Later in the week the euro will likely be somewhat sensitive to headlines around the expansion of the Eurozone's rescue infrastructure. A consensus appears to be forming in favour of temporarily raising the bailout firepower to EUR940 bn. This would be a marginally euro-positive development given it has been well telegraphed, although any negative response by the ratings agencies to rising sovereign contingent liabilities could quickly undo any benefit to the euro.
Research Spotlight "Liquidity: The Big Picture" Global Economics
Increased liquidity from extraordinary central bank actions is variously seen as an inflation threat, a source of currency moves, or a cause of asset price increases. But focusing on liquidity supply without considering money demand makes no sense. Clearly central bank balance sheets need to be a larger proportion of GDP than before the crisis given the move to a more cash-based society globally. And some central banks have to meet both domestic and international liquidity demand. Please see http://www.ubs.com/fx for details.
EUR Targets: EURUSD 1m 1.30, 3m 1.25
ECB policymakers continue to point towards eventual policy normalisation. After recent overtures from Governing Council member Nowotny and Bundesbank President Weidmann, overnight it was Executive Board member Coeure's turn. He said that a timely exit from nonstandard measures and a return to a less accommodative policy stance are essential once the conditions are ripe.
Italian Prime Minister Monti praised Spain's efforts in the area of labour market reform. However he expressed concern about rising Spanish yields and the risk these pose to Italy given that "it doesn't take much to recreate risks of contagion".
A decision is due this week on how (and by how much) to boost the size of the Eurozone's rescue infrastructure. EU Economic and Monetary Affairs Commissioner Rehn offered reassurances that Eurozone finance ministers "will take a convincing decision on the reinforcement of the firewalls" at the March 30 meeting. The Financial Times reported that Germany "is poised" to allow the combined firepower of both the EFSF and the ESM to be increased, and that a consensus is building behind temporarily raising the combined lending capacity to EUR940 bn. Der Spiegel also reported that German Chancellor Merkel and Finance Minister Schaeuble have abandoned their opposition to raising the ceiling on the combined rescue funds.
A weekend opinion poll showed that public support in Ireland for the fiscal compact treaty has risen; 49% of those polled said they would approve the Treaty at the upcoming referendum, 33% are still opposed and 18% offered no opinion. A referendum date has yet to be set.
I think we all learned the hard way. Expensive lessons and if the mistakes keep being repeated, adios.