I Macro thread is a great idea. I rarely hold longer than a day, however I have a general interest in underlying conditions and I love reading interesting theorys about the dynamics of markets over the longer term. I think understanding the marco environment is essential to every trader. It can give you a feel for the types of daytrading systems that will and won't work at certain times. Obviously when times are good the swings are bigger. Runningbear
My wife is taking and economics course as she goes back to school this fall. So I'm reading the text. One of the traders I respect the most reads the Economist. I read it for a while. I need to get back to reading it. It's hard to explain, but in reading the Economist, I felt like I had a better idea of what was going to happen when I'd take a position. Even though they cover bigger picture things. André
I presume this would me a most unlikely event but will pose the question anyway. Lets say "hypothetically" that foreign investors and the world economy as a whole lose faith in the dollar, and look for a new standard currency. Which currency do you think it would be? And for what reason? And do you think that the dollar has been the benchmark for all these years because of a lack of competition, or something else? I bring up this question after reading the article in the WSJ today about the baht in 97, Baker in 87 etc etc, and was just wondering if foreigners fled, where would they go? Would it be to one in particular or a handful? tia
http://online.wsj.com/article/0,,SB106480277779130800,00.html?mod=todays%5Fus%5Fopinion%5Fhs heres a link to the article mentioned if you sub to the journal online
That's an interesting question, no doubt. Couldn't read the article. Even though Japan's economy has fallen since it's 90s high, I guess I'd think perhaps they'd be the next option. They have industry and exports. And they're close to Asian markets. I dunno, I guess I find it hard to imagine any currency replacing the dollar. André
What do you mean that Japan's economy "has fallen from its 90s highs"? As far as I'm aware it is still growing, albeit anemically, so the 90s weren't really a "high" in the sense of a "peak". But if you meant "high" as in "good times", then weren't those really in the 80s?
I guess the peak was in 1989? I was thinking early 90s anyway, that's when I first got into investing and everything was Japan this, Japan, that. I'm not well read on the Japanese Economy, but it sure seems like there's remaining negativity. Do you have a take on a currency that could replace the dollar? André