The whole market is already short of dollars at the moment, but I think it could be a big mistake. I know this is a view completely opposite, and that the prospects of dollars is not good. However, I have good 5 questions and 5 answers to good because I think the U.S. dollar will reverse and this is the perfect moment for a long time.
1. How good is a strong euro? I believe that a strong euro will be more damage to Europe than a weak U.S. dollar hurt the u. S. Recently, our weak U.S. dollar is beneficial in two ways. First, by encouraging exports and reduce imports, a shot in the arm for the economy weak and not good for euros. Secondly, it helps to reduce our deposit trade in goods and services which, in turn, reduce the endless flow of dollars abroad, not good for the euro.
2. There is a currency that will replace the U.S. dollar as a reserve currency in the world? For that, I mean ... on what? China recently proposed that it would diversify out of dollars is a likely candidate to be the euro. But euro is not enough liquidity to meet demand. It is also an experimental currency, a government can not be invested with full confidence. Even with more than two third of reserve changes in dollars I would probably be a decade to replace the U.S. dollar as a reserve currency worldwide.
3. Can someone help the weak dollar in the long run? Although a number of countries, some Americans do not like, you really do not like the weak dollar even more. Why? A weak dollar makes U.S. exports and the attractiveness of foreigners to participate in the force, which they despise. Manufacturing industry is suffering, and their unemployment rate is increasing. Therefore, do not expect the government to fight against the growing foreign dollar, or even moderately encouraged by the start of the recovery.
4. What is the market? Love the stock a strong dollar, because the weak dollar is not good for exchange. Historically, the average yield of S & P 500 - at a time when the dollar was strong - profits were 86.6%, which is more than five times the average return of 16.4%, when the dollar was weak.
5. What is the best time to turn in the market? The best time to take a position on the market is unlikely to occur, and the simplest of cases. Give me a break ... corner store where the owner of housewives and start earning additional income by speculation that the Forex market, which they do not know anything, we are at the bottom. Smart money is now, and I know that you have to do.
Yes, the dollar is strong again, at least moderately. In the short term, it is probably more pressure. But come, and when it will become quickly!
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