Comments on: How to Play Rising Foreign Stocks and a Rising Dollar http://www.investmentu.com/2010/January/how-to-play-rising-dollar-and-foreign-stocks.html Investment Advice and Investment Research with a Contrarian Point of View Thu, 24 May 2012 23:36:56 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Suzanne Warren http://www.investmentu.com/2010/January/how-to-play-rising-dollar-and-foreign-stocks.html#comment-34240 Suzanne Warren Tue, 19 Jan 2010 17:38:16 +0000 http://www.investmentu.com/IUEL/2010/January/how-to-play-rising-dollar-and-foreign-stocks.html#comment-34240 Last year your publication was all for investment in other countries currency. Therefore, I took your advise and put a large sum in the Ever Bank BRIC fund, which doesn't pay interest and lasts for 3 years. You don't know if you have earned anything until the end of that period. Since you now see the dollar coming back, what do you think about the BRIC fund? Last year your publication was all for investment in other countries currency. Therefore, I took your advise and put a large sum in the Ever Bank BRIC fund, which doesn’t pay interest and lasts for 3 years. You don’t know if you have earned anything until the end of that period. Since you now see the dollar coming back, what do you think about the BRIC fund?

]]> By: BOB HUGHES http://www.investmentu.com/2010/January/how-to-play-rising-dollar-and-foreign-stocks.html#comment-34226 BOB HUGHES Tue, 19 Jan 2010 11:28:07 +0000 http://www.investmentu.com/IUEL/2010/January/how-to-play-rising-dollar-and-foreign-stocks.html#comment-34226 What about currencies such as Brazil and Australia? Won't they hold up well versus the dollar? What about currencies such as Brazil and Australia? Won’t they hold up well versus the dollar?

]]> By: Bob http://www.investmentu.com/2010/January/how-to-play-rising-dollar-and-foreign-stocks.html#comment-34208 Bob Tue, 19 Jan 2010 05:28:05 +0000 http://www.investmentu.com/IUEL/2010/January/how-to-play-rising-dollar-and-foreign-stocks.html#comment-34208 The big picture with currencies is that everything is relative. Therefore, yes, I can see the US dollar rising against the disarrayed mess that is the euro and the weak domestic economy that underpins the yen. However, there is the Canadian dollar which for many years was the Rodney Dangerfield of currencies. To the dismay of its central bank and its non-resource exporters currency traders seem determined to push it to beyond parity with the US dollar and well above its purchasing price parity. Having been stung many times in the past, its bankers were suitably cautious this time and due to over taxation of a complacent population its politicians are able to gloat about its fiscal position. Which caused Obama on his visit to remark "I love this country." The big picture with currencies is that everything is relative. Therefore, yes, I can see the US dollar rising against the disarrayed mess that is the euro and the weak domestic economy that underpins the yen.

However, there is the Canadian dollar which for many years was the Rodney Dangerfield of currencies. To the dismay of its central bank and its non-resource exporters currency traders seem determined to push it to beyond parity with the US dollar and well above its purchasing price parity.

Having been stung many times in the past, its bankers were suitably cautious this time and due to over taxation of a complacent population its politicians are able to gloat about its fiscal position. Which caused Obama on his visit to remark “I love this country.”

]]> By: Jeff Pluim http://www.investmentu.com/2010/January/how-to-play-rising-dollar-and-foreign-stocks.html#comment-34197 Jeff Pluim Tue, 19 Jan 2010 02:19:41 +0000 http://www.investmentu.com/IUEL/2010/January/how-to-play-rising-dollar-and-foreign-stocks.html#comment-34197 I always like your articles because they give an insight that others miss. In this case however, I believe that you are missing a huge point. China, in April 2009, had a foreign currency reserve of over $2 trillion of which $1.6 trillion was US bucks. By November 2009, they had reduced their USD holdings by about half. They have been supporting the USD on one hand, by being seen to support the Dollar by buying T-bills, while on the other hand they are dumping their USD exposure as fast as they can. I believe that when they have their USD reserves down to about $200 Billion, they will stop supporting the USD. At the rate they have been divesting themselves of their USD exposure, I think that will happen about May 2010. This will serve several purposes for China. The US will have to raise rates through the roof in order to finance their debts because the Chinese are their biggest supporters. The USD will tumble, securing China's economic dominance in the world. And of course, China will be in a very strong position to buy up falling US assets, and they will be able to dictate policy to the US if the US wants China's participation in propping up the US economy. You don't need armies to dominate the world if you control the world economy. That is something that consecutive US governments have failed to recognize. I always like your articles because they give an insight that others miss. In this case however, I believe that you are missing a huge point.

China, in April 2009, had a foreign currency reserve of over $2 trillion of which $1.6 trillion was US bucks. By November 2009, they had reduced their USD holdings by about half. They have been supporting the USD on one hand, by being seen to support the Dollar by buying T-bills, while on the other hand they are dumping their USD exposure as fast as they can. I believe that when they have their USD reserves down to about $200 Billion, they will stop supporting the USD. At the rate they have been divesting themselves of their USD exposure, I think that will happen about May 2010.

This will serve several purposes for China. The US will have to raise rates through the roof in order to finance their debts because the Chinese are their biggest supporters. The USD will tumble, securing China’s economic dominance in the world. And of course, China will be in a very strong position to buy up falling US assets, and they will be able to dictate policy to the US if the US wants China’s participation in propping up the US economy.

You don’t need armies to dominate the world if you control the world economy. That is something that consecutive US governments have failed to recognize.

]]> By: Alan Altman http://www.investmentu.com/2010/January/how-to-play-rising-dollar-and-foreign-stocks.html#comment-34192 Alan Altman Tue, 19 Jan 2010 00:48:53 +0000 http://www.investmentu.com/IUEL/2010/January/how-to-play-rising-dollar-and-foreign-stocks.html#comment-34192 If in your words, "that currencies are measured in other currencies. And most of the world's major economies have it worse than we do..." why not choose a currency that does not have "worse" problems such as the Australian dollar or Norweigan Krone? If in your words, “that currencies are measured in other currencies. And most of the world’s major economies have it worse than we do…” why not choose a currency that does not have “worse” problems such as the Australian dollar or Norweigan Krone?

]]> By: Fred Oddi http://www.investmentu.com/2010/January/how-to-play-rising-dollar-and-foreign-stocks.html#comment-34188 Fred Oddi Mon, 18 Jan 2010 23:41:42 +0000 http://www.investmentu.com/IUEL/2010/January/how-to-play-rising-dollar-and-foreign-stocks.html#comment-34188 I want to know what the dollars I don't yet have will do against the things I need to use. What will the balance of trade be, cost of commodities? Are you only concerned with what benefits the big banks? I want to know what the dollars I don’t yet have will do against the things I need to use. What will the balance of trade be, cost of commodities? Are you only concerned with what benefits the big banks?

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