I recently watched an interview with Jim Rogers on the ‘Wall Street Report’, where the Money Honey asked Rogers what his best investment was for the foreseeable future. He stated either the Chinese currency (which I do not know how to purely play via the States), Japanese Yen and/or the Swiss Franc
The Yen and the Franc can be played via the FXY and FXF, respectively. Both are CurrencyShares pegging the foreign currency against the dollar (click to enlarge charts):
I remember an interview Greenspan gave to CNBC when he stated the Yen was a good place to be due to an increase in productivity that Japan will see over the next few years. I am sure the unwinding of the Yen Carry trade will help the Yen rise as well, but I am not too familar with this issue. This is why I would choose the FXY, if I had to choose one.
The dollar may rally prior to any interest rate cuts, as the charts already show a pull back. If this trade is appealing, look to get in before the Dec 11 and any more rate cuts.
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