Should G20 Crack Down on Forex Speculation? The last few months have born witness to an unprecedented level of volatility in forex markets, to say nothing of the fluctuations in other areas of securities markets. Emerging markets currencies in particular, as well as a handful of industrialized…
The last few months have born witness to an [...]
Currency Pegs back in Style Having endured years of abuse from free-market advocates and the International Monetary Fund, fixed exchange rate regimes are officially back in vogue. This is because the sole currencies not to have been affected by the recent surge in forex volatility…
Having endured years of abuse from free-market advocates and the International [...]
FX Correlations Surge on Risk Aversion Since the credit crisis heated up several months ago, the theme of risk aversion has predominated in equity markets. This is also true in forex markets, where deleveraging and a shift to perceived investing “safe havens” has led to a…
Since the credit crisis heated up several months ago, the [...]
Russia to Devalue Ruble Russia is currently facing its worst currency crisis since 1998, when it defaulted on its debt and the Ruble plunged 71% against the Dollar. This time around, Russia is being attacked on two fronts: the sell-off in emerging markets and…
Russia is currently facing its worst currency crisis since 1998, when it [...]
What’s bearish for stocks, is bullish for the dollar I came across a study that confirms just how tightly tied the markets have become. According to James Bianco, president of Bianco Research LLC: Over the last [...]
A Time to Face Our Investing Fears Every time it looks like a real stock market rally is about to happen, the indexes end up right back down where they started (or lower). Panic and doomsday scenarios are all over the newspapers and TV talk shows. And when you look at [...]
How to deal with Drawdowns on Systems and Managed Accounts Drawdowns as defined by Investopedia are the peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted as the percentage between the peak and the trough. However what I wanted to address is why drawdowns [...]
Hedging the Rising Dollar While the Dollar rally may ultimately prove beneficial to US consumers (due to cheaper imports), it is certainly not helping US-based multinational corporations. Companies that earn a significant portion of their revenue abroad would normally be considered stable investments during…
While the Dollar rally may ultimately prove beneficial to US consumers (due [...]
Hedging the Rising Dollar While the Dollar rally may ultimately prove beneficial to US consumers (due to cheaper imports), it is certainly not helping US-based multinational corporations. Companies that earn a significant portion of their revenue abroad would normally be considered stable investments during…
While the Dollar rally may ultimately prove beneficial to US consumers (due [...]
Beware of Overconfidence in the Dollar The word “confidence″ has become ubiquitous when talking about the credit crisis. Policymakers talk casually about the lack of confidence and offer solutions for its restoration. But wasn’t it a surplus of confidence that was responsible for the credit crisis?…
The word "confidence" has become ubiquitous when talking about the [...]
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