Kino1975

Recessions Are Perfect for Currency Investing

"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."

I agree - The market is clearly far from normal. Normal theory must be thrown out the window as we could no longer be concerned about the potential for return but for a safehaven for our funds. Investing in the market now could be the key IF you are prepared and stomach it.


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.