In 2008 the USA was in deep trouble. The people in charge acted quickly to tackle our financial problems.
The Europeans stood there saying they had not our problems. They were OK because their banking system was more conservative (read: exclusive and secretive).
What we are witnessing is the delayed reaction of the European ineptitude in reacting and tackling their problems.
I am not surprised!
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest
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2 comments:
Given the backdrop regarding the euro, you might think the euro would be making all-time lows. For all the fear and even panic that the euro is headed for oblivion, it's actually trading higher now, relative to the dollar, than it traded from 2000 to 2006. In view of this surprising price action, combined with extreme negative sentiment, do you think the currency markets might be actually signaling that the euro is basically okay and a sharp rebound is imminent?
The Euro is oversold. I agree. But Europe has too many problems. There are other asset classes that are easier to predict.
My experience with currencies is that they reflect productivity/inflation/profit differentials between countries over the long term (5-10 years).
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