The dollar is trading at historic lows. And inflation as well. Call that a paradox. But not if you are doing business overseas or just across the border. Things are expensive.
The market as whole has record short interest which by a look at the economy makes sense. If the market is adjusted to relate for commodity inflation, it has crashed.
But the US stock market should have strength because of the cheapness of the assets to the falling dollar. The DOW is close to 14000 but to a Brit it's at 7000! since the Pound/Dollar is 2:1.
I would rather own a co. that makes its money overseas, quoted in dollars, and hasn't had the currency valuation yet. I read today that tech co. make a bunch of their money overseas which is why we are seeing revaluation of that sector.
Im concerned with my dollar savings account which has horribly depreciated. One should own Swiss Franc, Indian Rupee, Canadian Dollar, Gold, Silver. Short term paper.
Mining companies are the pure play for dollar revaluation since what they have to sell is in demand throughout the world. I like the more speculative plays because of the greater percentage increase of profits, possible buyout, possible bonanza find, and you can buy shares of them. Golden Star, Samex, IBI.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment