Wednesday, May 10, 2006

The symbiosis lives

No less expected than Fed’s “raise and pause”, and perhaps more importantly today was the US Treasure yet again declining to name China a currency manipulator. So rationality and pragmatism triumphs over political pettiness once again and the international economic order lives for another day.

Elsewhere, the troubled waters in which Microsoft, Dell and Cisco found themselves should quench any hope that corporate spending will somehow sustain another leg of this bull market when the American consumer finally runs out of steam. Caution is still very much warranted. In the last post, I mentioned being wary of EEM puts. I’ve had a change of heart (hey, this is my blog, I’m allowed to do this!). I now reckon that perhaps 3 measly contracts would be enough to off-set whatever exposure I now have. I’ll let you know if and when I take action.