Ben Bernake is *******, he is going to blow up all my earnings in usd on forex. I agree with Sive I must find something better like CHF I cannot have usd trading account anymore...
Sive you have made my day -thinking of trading the AU -you cud not please me more -
Looking forward to your posts and i thank you again for your utterly professional reports.
Thank you Sive for another excellent analysis and sharing your ideas with us,
please could you advice us/write your opinion/ what currency could be good for having a trading account at broker? and for how long time horizon?
Now I have usd trading account and I dont know whether change it into CHF. or maybe AUD?
how long could it take Usd to slump down on 0,7 USD/CHF again? maybe within 2 months till US presidental elections?
Hi Guys,
well, may be you understand me a bit wrong. I've spoken not about currency for trading, but for investing. In current environment I can't ignore some things. Since I'm manage small fund, our refrence currency is EUR, but we invest in EUR-USD assets. Currently we have approx. EUR/USD 40/60% assets and 25% of our assets in Gold.
So, I told about long-term switch from EUR, USD to , say CHF and AUD, or may be even CHY, Korean Wons or other currencies. Now with QE's on both sides and real uncertainty in EUR - it start very difficult control currency risks. For that purpose I need safe currency. Major condition - healthy economy, low Deficit/GDP ratio, Low Debt burden. Australia has real AAA rating. On previous week South Korea (although this is too small country) has got AA- from S&P. Switzerland. How knows, may be it will be Russian Rubles sometime. Currenty Russia increase rate to 8.25%. Of cause this should be some combination for diversification, but you have to be sure with currency.
But what currently EUR is, what US Dollar is when each american owed 50 K USD. Current situation shows that withing earch year for ECB and Fed it becomes more difficult to control this huge amount of money and to invent tools that could some way safe it. Besides, such injections of liquidity on both sides could safe the rate but not the value of the currency. So, this is real and very sophisticated problem...
BTW, Xenofanes, you can open Gold account. This is possible, at least in Alpari.
In short term perspectives, when you get significant return on speculation and spend money from your trading account - this is not so crucial question. But when you invest for years - this is really significant risks.
