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Economy
In reply to the discussion: STOCKMARKET WATCH -- Wednesday, 11 July 2012 [View all]Demeter
(85,373 posts)33. No one wants to be a safe haven anymore
http://www.marketwatch.com/story/no-one-wants-to-be-a-safe-haven-anymore-2012-07-11?siteid=YAHOOB
Safe haven. It is fine combination of words which, rather like private bank, or members only, should have a certain cachet about it. It suggests a currency, bank, company, asset or institution that is rock-solid, reliable, dependable, and has probably been around since Noah was first learning carpentry. It was something you might aspire to. But now no one wants to be a safe haven any more. The Swiss and the Danes are already battling against it and the other havens that remain are becoming ridiculously overvalued. That creates an acute problem for investors. As soon as they flee to a safe haven, the authorities slam the door in their face or else it turns into a crazy bubble. It does, however, create an opportunity as well if you can work out what the next safe haven will be, you can ride it as it soars in value.
...Amid the turmoil in the euro zone, and its unending succession of 30 seconds to save the currency summits, investors have been searching for anywhere they can park their money that keeps them away from Merkel, Hollande, Monti or any of the others in charge of the worlds biggest economic bloc. After all, you dont want to leave much cash at the mercy of a group of politicians who understand about as much about the markets as you and I do about the Higgs boson particle....
The Icelandic krona looks like good value. It is close to the euro zone but safely outside it. The economy is recovering fast from the financial crisis. And its banks have probably learned their lesson about taking crazy risks. In fact any currency starting with a K looks a good deal right now the Swedish krona is hitting daily highs, while the Estonian kroon and the Czech koruna look like good bets as well (you might want to give the Papua New Guinea kina a miss though)...So do Polish equities. It is a low-debt, fast-growth economy right next to the main European economies. And the Israeli shekel could easily become the next refuge currency. A strong, well-managed economy, with a tough central bank, it has the potential to become another Switzerland. True, it has a few enemies, but it is hardly as high risk as most of the euro zone.
...In a long-running crisis, there is no better place to park your money than cash in dollars. The U.S. economy may have plenty of problems of its own. It has big debts and growth that is nothing like as fast as it used to be. But compared with the rest of the world, its a genuine safe haven and it is big enough not to be completely overwhelmed by hot money.
NO MENTION OF HARD METALS, I SEE
Safe haven. It is fine combination of words which, rather like private bank, or members only, should have a certain cachet about it. It suggests a currency, bank, company, asset or institution that is rock-solid, reliable, dependable, and has probably been around since Noah was first learning carpentry. It was something you might aspire to. But now no one wants to be a safe haven any more. The Swiss and the Danes are already battling against it and the other havens that remain are becoming ridiculously overvalued. That creates an acute problem for investors. As soon as they flee to a safe haven, the authorities slam the door in their face or else it turns into a crazy bubble. It does, however, create an opportunity as well if you can work out what the next safe haven will be, you can ride it as it soars in value.
...Amid the turmoil in the euro zone, and its unending succession of 30 seconds to save the currency summits, investors have been searching for anywhere they can park their money that keeps them away from Merkel, Hollande, Monti or any of the others in charge of the worlds biggest economic bloc. After all, you dont want to leave much cash at the mercy of a group of politicians who understand about as much about the markets as you and I do about the Higgs boson particle....
The Icelandic krona looks like good value. It is close to the euro zone but safely outside it. The economy is recovering fast from the financial crisis. And its banks have probably learned their lesson about taking crazy risks. In fact any currency starting with a K looks a good deal right now the Swedish krona is hitting daily highs, while the Estonian kroon and the Czech koruna look like good bets as well (you might want to give the Papua New Guinea kina a miss though)...So do Polish equities. It is a low-debt, fast-growth economy right next to the main European economies. And the Israeli shekel could easily become the next refuge currency. A strong, well-managed economy, with a tough central bank, it has the potential to become another Switzerland. True, it has a few enemies, but it is hardly as high risk as most of the euro zone.
...In a long-running crisis, there is no better place to park your money than cash in dollars. The U.S. economy may have plenty of problems of its own. It has big debts and growth that is nothing like as fast as it used to be. But compared with the rest of the world, its a genuine safe haven and it is big enough not to be completely overwhelmed by hot money.
NO MENTION OF HARD METALS, I SEE
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