Silver – like gold – has enjoyed a high-octane surge. But what now? How do you keep chasing the profits that inflation is sure to bring without risking the loss of those profits should silver prices reverse? Well, options expert Larry D. Spears last week showed investors how to hedge against a possible decline in the price of gold – and this week he’s back to do the same ….
Category: Investment Portfolio
British Pound Continues Gradual Ascent
The British Pound has risen almost 15% against the Dollar over the last twelve months. It seems that the markets are ignoring the fiscal concerns that sent the Pound tumbling in 2010, and focusing more on inflation and the prospect of interest rate hikes. At this point, the Bank of England (BOE) is now racing with the European Central Bank (ECB) to be the first “G4″ Central Bank to hike rates.
Oil could reach $300 a Barrel
If the entire Middle East falls under radical control – we could be looking at $300-a-barrel oil and pump prices of $9.57 a gallon. Definitely a stunner.
U.S. oil prices yesterday (Tuesday) hit their highest levels since September 2008 as investors reacted to fears that Middle East tumult would spread from Libya to such key Organization of Petroleum Exporting Countries (OPEC) as Iran and Saudi Arabia. But never fear: Even if the Middle East melts down and oil prices soar, there are moves you can make to hedge away your risk.
Currency Investing: Where to Turn When the Dollar, Euro and Pound Let You Down
If you’re looking to short Western currencies, one possibility is to short them against emerging-market currencies, such as the Chinese yuan, the Indian rupee, the Brazilian real and the Russian ruble.
India and Brazil are running large government budget deficits, in spite of their amazing booms, and both currencies are highly vulnerable to a sudden monetary tightening or a downturn in the global economy.
China, tightly manages its currency. There is certainly potential for the yuan to rise, provided that China maintains its present policy of allowing fairly free inflows of foreign capital while barring outflows of its own savers’ money.
Canada and Australia are reasonably well-run countries with large commodity exposures. So they should do well as long as the current commodity boom continues.
In the Asia-Pacific region, South Korea, Taiwan, and Singapore all have superbly-run economies that are structurally sound.
A currency portfolio that contains those five currencies – the South Korean won, the new Taiwan dollar, the Singapore dollar, the Canadian dollar, and the Australian dollar – could thus be relied upon to maintain its value better than most.
Shares rally as Mubarak resigns
Global markets have climbed and the price of oil fallen after Hosni Mubarak stepped down as Egypt’s president.
“The market will be worried about the risk of contagion within the region and whether the Egyptian example will create a domino effect . They will be looking to be reassured that the region will remain stable over the coming weeks and months.”
On Wall Street, the Dow Jones iindex Dow rose 43.97 points, 0.4%, to 12,273.3, its highest close since June 2008. The Nasdaq index rose 0.7% to 2,809.4 points.
In London, the FTSE 100 shrugged off heavy losses to finish 0.7% higher at 6,062.9 points, while the key French and German markets also enjoyed late surges.