Tuesday, April 01, 2008

Letter from a friend II...

...who inquired about our "time for greed not fear" call on stocks:

"Vix coming down fast, but then when you take the largest negative and turn it into a positive doesn't leave much to complain about... Still worried about foreign stocks I know they r down a lot, exception brazil."

My reply:

"Yes...and the volatility of the Vix is coming down too. This is "different" than the last rallies...that's the quantitative difference.

And we have a completely different liquidity situation with aggressive policymaking...that's the qualitative difference."

I realize this is a technical answer. Foreign asset holders are now coming back to the U.S., and the rallying dollar only confirmed this today.

A general note: Any readers are invited to email me or comment. with any questions or excoriations.

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