Results 1 to 2 of 2

Thread: the Euro tumbles ...

  1. #1
    Banned Melonie's Avatar
    Joined
    Jul 2002
    Location
    way south of the border
    Posts
    25,932
    Thanks
    612
    Thanked 10,563 Times in 4,646 Posts
    Blog Entries
    3
    My Mood
    Cynical

    Default the Euro tumbles ...

    ... IMHO as the temporary (and financially undeserved) result of the failed French and Dutch elections on EU political ratification. At any rate, the US dollar has risen significantly against the Euro, which makes it cheaper for people with US dollars to buy things priced in Euros. Therefore, if you're a mutual fund investor, you may want to consider buying into a foreign stock fund. If you're a direct stock investor, you may want to consider snapping up some ADR's of good European companies. Once this temporary situation passes, IMHO the exchange rate will return to something near 1.28-1.30 from the current 1.22, resulting in a 6-8% pickup in the US dollar denominated values of the Euro based european investments.

  2. #2
    Veteran Member
    Joined
    Sep 2003
    Posts
    744
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Default Re: the Euro tumbles ...

    Long term it is temporary. However short term and medium term (3 or 4 years) might be required to get a rewrite and accepted solution in Europe. Also (despite the numbers)
    US inflation is edging up and China keeps using more and more gasoline and other resources and their currency is pegged to the dollar by government policy with almost no currency market infulence. China also appears to be able to outbid us for gas and resources.

    I'm personally going to start buying Hybrid cars and over ten years hope to have all
    three of my vechicles replace. No good small SUV or truck or van hybrids right now.
    We need to end this over dependence on oil. It's quite an old transportation technology now, (refined organic carbon molecule fuel) and we need to move on. Even if GM or Ford gave me one of their gasoline vehicles I would not drive it right now as they are behind the curve of style, fuel systems, engines, and what they are building.

    Let's see if the Fed raises rates in July. A half point increase would really send a message to the currency markets and then they can cool it for awhile.

    The dollar strength and higher rates are going to be around for awhile which I view as good. If rates do not go up on mortgages and long term bonds, I would then subscribe to the view that Fannie Mae and Freddie Mac have indeed become monsters merrily borrowing at a low government rate and creating liquidity that isn't tracked in the statistics.

    The liquidity is created when people over mortgage and take out cash on their refinances.
    You would think that the amount of value increases that appraisers and banks could recognize is about at the end. Higher rates, more job losses, static wages in general
    and foreclosures when the values decline in California and I'm afraid to say in some parts of the east and even single family in Atlanta should put a coming end to the merry go round.

    The dollar will strengthen even more because it is the order of things given my scenario.

Similar Threads

  1. Replies: 8
    Last Post: 01-27-2008, 07:10 AM
  2. 500 Euro Bill as a Savings Tool
    By 242_fair in forum Dollar Den
    Replies: 33
    Last Post: 07-24-2007, 01:29 PM
  3. Get your tips in Euro's
    By Deogol in forum Dollar Den
    Replies: 8
    Last Post: 12-30-2006, 04:11 AM
  4. Working in Portugal for the Euro 2004
    By Maggie_Simps in forum Club Chat
    Replies: 4
    Last Post: 05-16-2004, 06:17 PM
  5. For Euro 2004; European Compilation - ideas???
    By Malibu in forum Music Mix
    Replies: 7
    Last Post: 04-29-2004, 04:13 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •