We are in a global marketplace. In times of crisis, for example in the US, the governments of the foreign countries will not stand aside and let their currencies strengthen to historic levels when that would jeopardize their export industries. The Europeans and Japanese heavily rely on exports, a further strengthening of their currencies is not in their best interest. I have never been a fan of holding currencies as a hedge against a devaluing dollar. The other nations' currencies will also be devalued like all fiat currencies have throughout history, that is what governments do when they have access to the printing presses. Gold is an ok hedge, but its value is really symbolic more than real. Really, the best asset against a devaluing dollar are commodities. It is no coincidence that they are the best performing asset class.
They may be a good investment, but what currency do they pay in? In a world where paper money collapses this is more paper.
Sold SOME of that UYG position today around $24.00 at a profit, what do you know averaging in paid off again, 1st DUG now UYG...... I did average in as usual and it worked out yet again....
50% drawdown and you end up closing it with a 2% profit after sweating bullets. Awesome trade, as always. Keep it up!
I don't understand, why does owning oil suck if the price keeps going up? Is there a law that states that oil can't keep going higher? We have oil going down for the past several days and now all the oil bears are out of hibernation acting like it was just one big bubble that's burst. At current prices, oil is a much better investment than US equities, IMHO. I did think oil acted toppy a couple of weeks ago, and there has been the pullback, but its not the start of a bear market. Not unless China and India stop making cars.
CEO at $ 80 oil is supposed to be worth $ 185/sh. Since oil is over $ 100 and if if China floats their currency, you are looking at a $ 200/sh stock. I bought it today around the low's of $ 152/sh. So you get a free pick from me. I will try to post back here when its at $ 185/sh.