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Safe havens haven't been so safe lately (see gold, see dividend stocks), and hedge funds are...

Safe havens haven't been so safe lately (see gold, see dividend stocks), and hedge funds are gearing up to attack another, says SocGen - the Swiss Franc (FXF). As Fed tapering draws near, yield differentials between the greenback and the swissie should increase at the same time the SNB continues to pledge a weaker franc. "All richly valued 'safe havens' are potentially perilous assets when liquidity is about to dry up."
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Comments (2)
  • George Dorgan
    , contributor
    Comments (159) | Send Message
     
    The more time passes, the stronger exporters like Switzerland or Japan become. Especially in Q2/Q3 the US trade deficit intensifies, while these countries do more investments, confident that demand exists.
    The US has always weaker growth in summer ("sell in May") and cannot cope in manufacturing (ISM of 49).

     

    Bad tip to short these safe-havens in summer. The only positive argument for USD in summer are the still rising house prices. But as soon as the Fed tapers, they might fall again.
    Double reason to be long safe-havens in summer.

     

    http://bit.ly/12sA9VW
    5 Jun 2013, 10:52 AM Reply Like
  • Daveintosa
    , contributor
    Comments (142) | Send Message
     
    Economist BCJ makes a lot of sense! GO BREWERS!!!!!!
    5 Jun 2013, 11:24 AM Reply Like
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