UltraShort Euro (AMEX:EUO)

Seems like a simple plan
There are lots of complications to be worked out and no simple solutions that come to mind.

The Euro's heading down.

EuroCrash eminent. Greece and Spain going to tumble the whole Euro Central Bank. "pulling out in August" after the bloodbath.

Over time the Euro will be mostly constant with the dollar, but this UltraShort will decay to zero because of the how it shorts the Euro.

I think the Euro will go down in value (compared to the US $) over the next 6 months or so.

Will lose tracking accuracy if held more than 1 day, so definitely will underperform in the long run. No brainer.

It is only a matter of time when Greece will default on its debt. EU Nations are simply stalling the inevitable. This default will subsequently bring down the Euro as the main EU Countries (Germany and France) will have to incur these losses.

The European financial situation is extremely volitaile, which will make this fund grow exponentially with the drop in the Euro.

dead currency

Euro will have to weaken in order to bail out peripheral countries and keep export-driven economy alive.

The euro value cannot be sustained. Socialism is killing the EU.

Anyone who thinks that the EURO will go down against the Dollar should think again.

Just consider that the US debt is on par with that or Ireland and Greece, worse than Portugal, Italy and certainly Spain.

The only other countries with such a Black Hole as the US are Japan and the UK, neither of which is part of the EURO...
So while Wall Street & the City are having fun with toying with little countries like Greece, Portugal and Ireland, they seem to forget that their country’s balance sheet is in just as bad a condition as the worst of the PIGS...

Portugal, Ireland and Greece make up perhaps 5% of the EURO, whereas the US makes up about, mmm, yep 100% of the Dollar. Wooops.

In defence of the Brits one could say that with their latest budget reductions they are now a bit better of than Spain, but let's not forget that they have NO savings for their civil servant/state pension plans (they pay that out of current income!) and their banks were the no 2 causers & victims of the 2008-2009 Debt crisis.
Are we sure that we have seen all the holes that there really are in the British banks??

http://www.thinkplaninvest.com/wp-content/uploads/2010/08/sovereign-debt.jpg

As much as I hate the economic joke that is the EU, I hate leveraged ETFs even more

bullihs

s& p 500

Euro has had a nice rally, time for a pullback. EPV also a good candidate. Euro bank stress tests leaking rapidly.

I think the euro is headed lower, and its rally against the dollar in the last couple of days is just a counter-trend rally.

Euro

outperform