May 14, 2010
– Comments (5) |
RELATED TICKERS: EUO
It will then allow Europe to compete against US exports.
The lower the Euro the more European goods become favorable alternatives to US goods.
All the airhead news wigs on tv saying EURO is falling because France threatened to leave the EURO are all wrong.
It has nothing to do with that, the real problem is rumors are surfacing that France will be downgraded, based on the size of France that would be a huge blow to the Euro.
The country that Zero Hedge has long claimed is the glossed over black sheep that will take down the core of the eurozone is about to be downgraded. At least that's the case according to the latest flurry of market rumors. EURUSD now moving 10 pips with each trading block... and not higher. Look for support somewhere in the mid 1.23s.
I agree, most of the shares of German "exporters" are "doing just fine". And some of them are among my largest positions (see here).
I heard a very interesting comment last night on CNBC Fast Money by Tim Seymour that I thought was very insightful.
Yeah I know, insightful is hard to find these days but they have a candid cast of characters.
He pointed out that the fall of the euro is largely irrelevant to the EC because they principally sell to each other.
PS If you watch Fast Money don't act on any rec by Karen Finerman -- you'll end up wearing a barrel unless you're 12 and can hold the position for 50 years. j/k but not really... ;P
On Monday I invested in EUO (2x Short Euro ETF) on the expectation of a decline in the Euro currency. I'm looking to make other investments to profit off the current crisis in Europe. I heard investing in German Exporters as a good idea, which I think does sound compelling. Any other ideas?
The other interesting aspect is that exports to Europe from the US are 20% of less than 8% of US GDP.
Ok, its a drag, but we can probably kick the habit for a while without getting hives ;)