Wednesday, February 18, 2009

Buy CHF, AUD, Sell USD, NZD

Dollar is at an alltime high because of the fear in the equity markets. The premise that American debt is good for a 2.5% return over 10 year bonds cannot last. If you have a portfolio with base value currency or base exposure to USD or SGD assets , time to diversify. Yen which seemed a good bet last few months, looks highly risky now due to political and policy reasons. A good bet would be AUD and CHF with a tenor of 6-8 months.

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