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| Post Financia Crisis Profit Opportunity | Views: 45 |
| Oct 24, 2009 6:58 am | | Post Financia Crisis Profit Opportunity | # |
keith long | | USD is being talked down all over the blogisphere and financial markets. So why is USDJPY up 400 pips in 2 weeks?
Big picture?
USD is going to be rising in all venues and global interest rate environment will remain historically low.
Global economic recovery {UK is a lagger} will be evident by 2010.
Stop waiting for USD to tank.
Replacing USD as world's reserve currency is not going to happen.
The US economy experienced a meltdown due to its generic strength not due to its systemic weakness.
MBS {Mortgage Backed Securities} and derivatives are important and positive risk distributioun vehicles that grew beyond the financial communities expecations and ability to manage them. The global financial crisis sprung from these new forms of credit instruments was a hiccup in the devleopment of risk distribution on an unprecedented scale and is on track to be corrected.
Beyond the Credit Default Swap crisis is a global economy with expanding demand and low interest rates and solid growth as far as the eye can see.
The world economies remain US centric, and the imbalances in the financial and currency markets are being resolved and normalcy is being restored.
I began buying USDJPY at 88 on its October 9, 2009 low. It is now 92.00 2 weeks later. Look for opportunities to buy Euro/USD and other currencies going forward. Buy low and sell high.
Keith Long
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