Host: One of our friends and one of your peers on this program and other programs my good friend Pete Mcguire ,down Australia runs Commodity Warrants Australia, just has a point he wants to make here Hey B, he says, we’re up 20 percent on the Dow already from the bottom. So people were talking about Barton Biggs there we only have to be 10% to be up 30 to 50% or there about, that’s assuming Mr. Biggs is talking about the bottom. Are you saying, Todd, do you think that the 20 percent we’re up on the Dow industrials already itself is unsustainable or does the market has quite a bit of clarity and rationality with its pricing point?

Todd G. Everts: I think the market is the market and it has its own clarity. What’s driving the market today is much different than it was 6 months or a year ago because it’s not highly levered. The banks haven’t come in and provided the same amounts of leveraging totality that they have in the past which means the investors that are in the market are traditional traders and without using leverage we’re seeing more reality in what the market prices should be. Are they going to sustain that is what I think is going to be very, very difficult because there’s a lot more bad news to come.

Host: If not equities then what is the preferred asset class right now? Just buy treasuries and accept the lousy return or what?

Todd G. Everts: No, its strategic diversified asset allocation method is the best way and cash is still going to provide for a lot of opportunities.

(BREAK)

(Deep 6 for the Dollar)

Host: Todd is a global macro top down kind of guy with a big picture, what the burning question for a person which his expertise from the Forex desk?

Patricia: Todd I’d like to ask you what’s the sort of risk appetite is the market talking about? When will this risk appetite actually cease? Are markets looking for something, a turning point when the risk appetite will actually start to peter out?

Todd G. Everts: We’ve seen a turning point and markets have rallied so much in such a short period of time but one thing we’ve got to take a look at is the gap between the bond yields and the performance of the financial stocks which is extremely wide which would suggest that the financial stocks would contract. These financial stocks on the other hand had been beaten down so much that with a little bit of cash coming to the market we’re seeing an improved performance and we’ll continue to see a lot of volatility.

Host: Does the fact that basically the numbers keep escalating, does this tell you that you really can’t trust governments and central banks anymore? What is the value of a paper currency? Surely this throws the question into the mix once again.