Just because the dollar goes up for a year while the fed raises interest rates doesn't mean that when they are done raising it won't continue to fall.
Rule #1 - Never let politics get in the way of making money. The markets do not care if you are Republican or Democrat.
As a long-term holder of Berkshire Hathaway shares, I am pained by Warren Buffett's political leanings, stance on the dollar/taxes and partial ownership of the Washington Post. Yet, Mr. Buffett has many redeeming qualities.
However, BRK reported this month that it has reduced its foreign currency holdings to $16.5 billion, from $21.5 billion three months earlier. A recent visit to Europe makes me a staunch dollar bull.
Hmmm caught going the wrong direction both times....
too bad guys
It's always the Last Hurrah--I hope Soros lost a bundle, too.
Doesn't shorting the dollar mean being bullish on the Euro? The product of a collection of socialist countries mired in unemployment and mountains of red tape?
Warren Buffet knows his niche well. He is, however, not an economist - as he will freely admit.
"even though US producer prices are still rising at 8.4pc a year."
Rising oil prices mainly due to Katrina have skewed the numbers in recent months. The core rate PPI is actually much lower. When the November/December numbers are factored in with lower oil prices, the average rate on an annual basis should be much lower then 8.4 pct.
The recent surge in the stock market signals a pick up in the economy for the first half of 2006.
I predict Q1 GDP of 4%+.