In recent weeks, the future of the euro has been a hot topic among investors, as the current “stress testing” of the common currency system has uncovered some worrisome flaws. The euro has slumped against many of its major rivals as fears about escalating budget crises in Greece, Spain, and Italy have caused investor anxiety. But for all the focus on the euro’s struggles, most investors do not realize so far in 2010 British pound ETFs have lost more ground than euro ETFs. The CurrencyShares British Pound Trust (FXB) is down 6.7% year-to-date, compared to a loss of 5.6% for the CurrencyShares Euro Trust (FXE). This sharp downturn in the pound comes as Britain finds itself in the worst fiscal situation since World War II. Some estimates put the current UK budget deficit at roughly 12.7%, on par with Greece. On the heels of Greece’s budget woes, this news comes much to the dismay of continental Europe, which is growing increasingly concerned over the fiscal condition in the British Isles. Recently the EU called on Britain to introduce immediate measures to prevent the shortfall from worsening in the next financial year. [click to continue…]
Federal Reserve meetings are always among the most anticipated and closely scrutinized events in the investment community, as specific decisions on key interest rates and more general observations on the state of the economy have the power to set off waves of either buying or selling on Wall Street and around the globe. Central bank meetings have lost a bit of their luster in the last year, as ongoing concerns of a double-dip recession and weak fundamentals in the economy have essentially removed any possibility of a rate hike and taken much of the suspense out of the gathering. [click to continue…]
One of the major stories of 2010 has been turmoil in the euro zone, as crumbling public finances in Greece have stoked fears of a “contagion effect” sweeping throughout the region. The prolonged economic downturn has left Greece with a massive budget deficit, and with $28 billion in debt due in April and May, fears [...]
As the U.S. dollar slid in recent months, one of the primary beneficiaries has been the euro, which had surged to the key $1.50 level relative to the dollar as worries about prolonged periods of low interest rates in the U.S. and the greenback’s future as the default reserve currency created a perfect storm around [...]
The steady decline of the U.S. dollar has been one of the major stories of the second half of 2009, with a “perfect storm” of economic conditions sending the greenback to new lows against many of its major rivals. While a declining dollar isn’t nearly the problem that some make it out to be – [...]
Each new day seems to bring more downward pressure for the U.S. dollar, an unwelcome development for some investors who have seen the greenback slide near the $1.50 level against the euro in recent months. On Tuesday, two very powerful forces in the global economy expressed their doubts on the dollar’s future prospects: Warren Buffett [...]
Not too long ago, J.D. over at Get Rich Slowly posted 25 Useful Financial Rules of Thumb. These guidelines are designed to help everyday people do more with their finances. We wanted to expand on that idea and make a more investing-specific list, with useful rules of thumb for the everyday, buy-and-hold ETF/index fund investor. [...]
