myWealth.com

Recessions Are Perfect for Currency Investing

Keep in mind that the currencies that went up when stocks went down...are likely to be the ones that go down once stocks head back upward. So people that think this is all hindsight aren't seeing that both sides are true. If investors think the yen will continue to rise with a rising stock market...they are kidding themselves. The yen heads lower when "times are good and stocks flourish"...and so has the dollar much of the time. Hope this helps.


On Dec 08 11:41 AM LonelyTrader wrote:

> Now is not the time to long the USD, or the yen, unless you are trading
> intraday. Too many uncertainties at this point. Look to crosses related
> to commodities (like CAD, NZD and AUD) and hold through the cycles
> -- but don't look too closely at the price each day or you'll end
> up with ulcers. It isn't for the faint of heart.
>
> Equities are gonna be choppy -- market is currently running out of
> sellers, as it was last week, so shorts who aren't nimble will almost
> certainly get crushed. Likewise, buyers who get greedy will get crushed.
> This is a depreciatory situation for both the USD and yen. I suspect
> other currencies will grind higher as money moves out of these two.

>
>
> There is nothing easy about trading currencies. Hyman hits some good
> general points. But it's the specifics that kill ya. Too many to
> mention here. Agree that this article should have been written earlier...by
> more than a year, perhaps, when EVERYONE and their Auntie was publishing
> stuff just like this.
>
> I suspect that 90% of those who follow this guy's advice in the last
> paragraph will have wiped out their currency accounts by this time
> next year. Unless they have very deep pockets or trade in sizes so
> miniscule as to be not worth the effort. In short, his timing is
> waaaaay off. Risk in these two bets is too high at the moment.