Other currencies
It's getting apparent the dollar's losing value around the world and not rebounding like it used to, so my question is, what does the average Joe have to do when it comes to investing using other currencies besides the dollar?
Comments
EconE, thanks for the link, I've been looking at the Euro mostly with an eye on the yen. What do you think, is Japan going to stage a comeback soon once the China rally calms down? Seems they've been ignored for quite some time.
I still have lots of homework to do with regards to foreign currency trading, especially when it comes to handling taxes :?: :? :shock:
Also, do you think there is any chance for the Canadian dollar?
With regards to foreign currencies...first...let me state that I don't invest in any so my knowledge is limited and my reasons for choosing currencies may be a little "whack".
With regards to the Pound and the Euro, sometimes I wonder if those two currencies aren't the ones that have already been "played out" by investors already. Also...with the seemingly ever expanding EU, I wonder if there are still more "growing pains" to come when considering the differing socio-political and economic issues that may come with some of the new members.
On Asian currencies I would think that it is a hard call as they are big creditors for us and they have a vested interest in keeping their currencies low so that the debt can be repaid and/or their exports kept competitive. They still want the Americans who are consuming to consume their products rather than "buy American". Plus...it's I'll bet it's a whole different ballgame in that part of the world and there would be so many factors to consider.
I have been following the Canadian Dollar this year and even though we have lost quite a bit of ground to it I think that there may be plenty more to lose. The reasons that I think about the Canadian Currency is for a number of reasons.
One is that they are resource rich.
Another is that I read in a different forum (a post by a Canadian) that mortgage interest isn't tax deductible in Canada so people usually want to get their mortgages paid off as quickly as possible.
I like the fact that they are our neighbors and it's not a currency from a country half way around the world fwiw.
there are other reasons that cross my mind from time to time but they are probably completely irrelevant....hell...who knows...the ones that I have listed for all of the currencies may be irrelevant. I usually try to look for reasons that I am wrong rather than try to convince myself that I am right.
I also...for some strange reason...think that the Mexican Peso will be an interesting one to watch.