Dangers of trying to catch a falling knife October 5, 2011 LONG term investors are understandably nervous about the weeks and months ahead in the financial markets and for the safety of their hard earned savings. At some point, the music is going to stop – Greece is facing an imminent default, and many will have seen Dexia’s trials earlier this week as the first of [...]
Mistakes to avoid if you move abroad October 5, 2011 MANY people choose to leave the UK to escape, temporarily or permanently, the gloomy weather and the even gloomier tax regime. Sadly, there is a mountain of bureaucracy to wade through before setting sail for warmer climes. “It is important to differentiate between moving overseas for a short period of time and expatriating indefinitely,” says [...]
Things can only get beta for currency October 5, 2011 INVESTORS have for many years tested their investment mettle in the traditional asset classes of bonds, equities and commodities. While this troika might seem broad enough in which to try to earn superior returns, it may surprise some that a simple currency strategy can outperform these asset classes. Many investors are familiar with carry trades [...]
Another low for the FTSE as banks and miners take a hit October 4, 2011 BRITAIN’S top share index hit a 15-month closing low yesterday, with banks and commodity stocks leading a broad-based sell-off, as growing doubts over Greece’s ability to stave off a debt default triggered fears of financial turmoil. The UK benchmark ended down 131.06 points, or 2.6 per cent, at 4,944.44, its lowest close since 5 July [...]
Wall St bounces despite volatility October 4, 2011 THE Standard & Poor’s 500 brushed up against a bear market yesterday, but investors rushed in to buy technology and other beaten-down sectors and the index posted its largest gain in more than a week. The broad US market index has fallen nearly 18 per cent in the past four months, hurt by sluggish economic [...]
Bernanke fails to rule out QE3 October 4, 2011 IN A testimony to the US Congress yesterday, Federal Reserve chairman, Ben Bernanke largely rehashed language used in recent speeches, such as his address at the Jackson Hole symposium in August and his speech to the Economic Club of Minnesota on 8 September. However, forex market reactions leaned more on what the Fed chairman didn’t [...]
AUSSIE COULD FALL BEYOND EXPECTATIONS October 4, 2011 VISTING Australia on business I am astounded at the cost everything. For an American, Sydney is now as prohibitively expensive as Zurich. A simple cup of coffee and a mineral water cost more than $12 at any sidewalk café. The high cost of living is a testament to the Aussie’s strong appreciation over the past [...]
THE TIPSTER October 4, 2011 THE EU must be stoking the ire of the Bank of Japan at this stage. Euro-yen at 11-year lows is begging for intervention from the BOJ. Look to buy on dips to ¥100.60-70. Forex.com is currently quoting ¥101.19-¥101.23. Dollar-yen refuses to break out from between ¥78.00 and ¥76.00 finding the ¥76.00 level a firm support [...]
FOREX ANALYST PICKS October 4, 2011 FOREX STRATEGIST JOHN KICKLIGHTER My pick: Short euro-dollar and short Kiwi dollar-dollar Expertise: Fundamental analysis with risk management Average time frame of trades: 1 day to 1 week Though it took a little time, euro-dollar finally slipped below that substantial $1.3400 floor that represented the 2010-2011 mid-point. A forgiving stop at $1.3650 is warranted and [...]
Michael Lewis dissects Europe’s woes October 4, 2011 “THE Greeks not only have massive debts but are still running big deficits. Trapped by an artificially strong currency, they cannot turn these deficits into surpluses, even if they do everything outsiders want them to do. Their exports, priced in euros, remain expensive. The German government wants the Greeks to slash the size of their [...]