The US dollar takes a pounding over deficit

[Craig]

http://news.yahoo.com/s/ft/20060512/bs_ft/fto051220061929327968

The US dollar suffered a severe sell-off on Friday, taking it to its weakest level against a trade-weighted basket of currencies since October 1997, in a tumble that helped to trigger falls across world equity markets.

Inflation fears have increased sharply since the Fed's open market committee meeting warned that further interest rate rises may yet be necessary. "It opened some eyes," said Brian Williamson, an equity trader at Boston Company Asset Management.

The conjecture seems to be solidifying into stark reality. We appear to have a bit of a hill to climb with dollar-denominated assets. Perhaps a good time to hold on to that fixed rate home loan, and non dollar-denominated investments ... anyone sanguine about bonds?

 

[Maximillion]

I have a large amount of bonds , yielding 7% to maturity, they all expire within 2 to 4 years, will be held to maturity

Corporate Bonds yielding 8%, let's hope,.