CurrencyShares Swedish Krona Trust (FXS)

porkbellyfuture (26.96) Submitted: 5/18/07 4:11 AM : Start Price: $139.11 FXS Score: -26.18

Unless you've been living under a rock the past few years, you no doubt have heard plenty of reasons why the US dollar is sure to drop. However:
1) All the other people who aren't living under rocks have heard it too, so all the bearish arguments should already be factored into the price
2) This is being compared to the S&P 500, which has returned an average of about 10% per year over the long term -- the krona would have to average a 10% gain per year, every year, to match this
3) On a purchasing power basis, the Swiss Krona and other major European currencies are currently significantly overvalued versus the US dollar -- if you live in the US and have travelled to Sweden lately you certainly know what I mean :)

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