Future Shock

Drawn into the stream
Of undefined illusion
Those diamond dreams
They can't disguise the truth
--Level 42

Financial markets are forward looking mechanisms. How forward looking are they? My sense is that, while time horizon fluctuates, markets are often pretty good at anticipating events 4-6 months out.

The Dollar index peaked north of 88 in early June. Five months later the Fed announces a $900 billion QE2 package. The USD closed under 76 today--down about 14% from June.

Funny how that works...

position in USD