Tuesday, March 15, 2011

Swiss Franc Safety

While I do not usually focus on the daily movements or noise in the markets, I wanted to provide an update to my article this morning: Japanese Nightmare.

I described the run toward the dollar in the early trading hours as part of the safety trade, however, the dollar has turned down sharply this afternoon and given back most of the gains.

The biggest beneficiary has not been the precious metals but the Swiss Franc.  The chart below shows the steady rise through trading this afternoon.  Perhaps we are one step closer to the final "endgame" where investors realize that running toward a bankrupt country (the US) is not a form of safety.

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