Out at the peak

Saturday, January 07, 2006

Is it time for Euros to shine?

My latest speculative move is Euro currency as Iran switches from Petrodollars to Petroeuros in March. This obviously means less demand for USD and EUR rises. However, this is what Iraq did and some would believe is the main reason for the invasion. First thing we did after taking control was to switch them back to Petrodollars.

Will US play the nuclear card and invade Iran? Hope not. This would spoil the EUR play. ;) (Just joking, I ******* hate war in any case.) Update: CNN/FoxNews have been reporting more Iran tension between US, Germany, and Russia. However, Iran is willing to negociate further.

On a side note, The Daily Pfennig is basically putting out a warning flag for NZD (due to their deficit). Their interest rate is very attractive, and I will still hold some, but 75% of my NZD will be traded in for EUR (either 3mo CD or world currency account @ Everbank) for the above strategy.


  • are you actually holding EUR or did you buy FXE (new Euro ETF)?

    I'm having the same thoughts for pretty much the same reasons. eep.

    By Blogger 42, at 8:32 PM  

  • oh 1) like the blog (could ya post more often? :) and 2) I got out of the Mpls/St Paul market just post-peak. I got one offer on my pretty cool downtown loft that was a few grand below asking after three months and two reductions. I still made 30k, so I can't bitch. now I rent, and I'm happy to pay 1/3 of the owner's mortgage. heh.

    most of my investment is in a rolled-over 401k that's now an IRA. a good chunk of that is AAPL and GOOG both bought around May of last year and I've made a bloddy bundle on em. I added GG, EWZ and RTP in small amounts. they've done OK. the rest is in USAA mutuals. overall my investments grew 69% from May 05 to now. not bad :)

    but I know what's coming. I have a wodge of cash sitting in a 3% savings account, so thanks for the Everbank links elsewhere. I think forex and maybe gold/silver are the way to go once the dung starts hitting the fans.

    still, the way AAPL and GOOG are going it's gonna be hard to figure out an exit strategy. I've made over 100% on those two.

    By Blogger 42, at 8:44 PM  

  • Hi David,
    I'm debating whether to get a 3mo Euro CD with 1% or just getting a Euro currency account (both available through Everbank). Since I could better time the market with the currency account and the 1% return would only help in the long term, the currency account sounds like a better option.

    I cannot move into this position until late Feb when other CDs mature to free up the funds.

    Good job on your market moves! I wish I had funds when GOOG IPO'd, but everything was tied up in my house at the time. I don't know what the proper exit is for GOOG. It has boggled me, and I would have sold at $180 if I bought at $100. GOOG is just so high right now, and I am not aware of anything else with that high of a P/E. I'd sell some just to realize some earnings, but it could keep going up for years.

    At some point AAPL will hit a saturation point with iPods, and that will trigger a decline. However people are upgrading to new iPods, so the portable player market still has a ways to go. I'm a total geek, but there still isn't a player out there that suits me. Maybe their Intel Macs will be a success.

    I'll try to post more often.

    By Blogger Out at the peak, at 1:34 PM  

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