Ramzi

Market Nosedive Pushes Dollar Down

me too ... but I was considering converting my US dollars into another hard currency with high interest rate and the AUD fits that requirement. However my question is is there a credit risk or default risk by Rydex (the institution that offers FXA). what if Rydex goes under? is the FXA gone with it, or do we, as investors, maintain owenership of the AUD deposits at JP Morgan? can comment Mr Nilsen?


On Sep 23 04:10 PM Robert Nilsen wrote:

> I probably should not post here as I am not a trader .. and have
> absolutely no business dealing in FX.
> As such, I rely on the "basic fundamentals" and have had some positions
> in FXA, FXC and FXM .... NOT because of some magic formula but for
> the yield and the underlying fundamentals of the US dollar.
> The world is awash in US dollars. Deficits (trade and budget) are
> beyond any level of reason. There is no sign this trend will NOT
> continue. The "printing presses" are going 24/7/365 so .. dare I
> apply the laws of supply and demand? .. the trend for the greenback
> can only be down.
> For yield and some comfort look into the FX series (Canada, Mexico,
> Australia.) They are deposits in New York banks, provide nice yields
> and offer, in my opinion, some price appreciation potential if one
> has patience and a time horizon beyond tonight's dinner.
> I currently hold a few shares of FXA. Have done rather well in the
> past (mostly dumb luck) with FXC and FXM... but I liked the yield
> along with the luck.
> God Bless America!