CurrencyShares Euro Trust (FXE)

FlorisHJ (92.58) Submitted: 7/22/07 2:29 PM : Start Price: $137.27 FXE Score: -36.00

Comparing a currency to a market index gives an innate advantage to the index; if the dollar weakens this improves buying power for foreign capital buying US stocks which should help S&P500 and hurt FXE. Short term this fund will rise as markets learn the full extent of the fundamental weakness of the US economy, but longer term "the stock market always wins" as long as the economies of the US and Europe grow at vaguely comparable rates.

Report this Post Replies: 0 | Reply | Permalink