I respect your investment opinions greatly, and I wonder what you though of shorting the U.S. Dollar by investing in some of the new ETF's by Wisdom Tree. There are etf's for each of about 8 or 9 foreign currencies. Are you still long on Asian currencies? Expense ration is only .45% on these, and wondered if you though this was a good way to short the buck.
Actually for the 1st time since 2005 there are more open poitions on the USD to get stronger (LONG) till the end of the year,some increase in interest rate expected anywhere from once to 3 times by December that year,if the OIL price keep on the rise as is the case right now,mostly due to manipulations and speculations done by big financial institutions,inflation will be on the rise and the FED would have no choice just to raise the Interest,attract again foriegn investors going back to the USD and cause slight decrease in GAS prices with stronger USD as well.
The bubble of commodities for the most will burst by end of this year,according to all technical charts it is just a matter of time and we are in the last wave prior to sharp correction other way,in long run it will rise again due to natural demand beating the suply but in short-mid run of several months from now USD is at that low point good hold as there wouldn't be any further cuts in interest and there is good lilyhood financial funds pension and hedge funds would be prohibitted of placing further funds into commodities and drive the prices higher wiothout any realistic reason..when prices increase so high daily as they do lately ,there is no justifications for it in terms of demand/supply as much as just pure manipulations..this will end within coupe of mohts as well.
Gas price will drop again towards 100$ a barrel and the USD will correct its value vs the Eiro and other currencies.
yes raising rates will strengthen the dollar which will then band aid inflation. however raising rates will also cripple the finacials even more then there are crippled now. bank failures, government bailouts will increase.....this will then hurt the dollar. sooooo that would put us right back where we are started. we are screwed. inflation and the dollar are not the only problems....theres not a magic cure to the multiple fatal diseases this country has.
