Category: Personal Finance

Morgan Stanley, Goldman Sachs Counter Bearish Gross on U.S. Debt

Morgan Stanley and Goldman Sachs Group Inc. are dropping bets against Treasuries.

Economic growth is falling short of forecasts and market participants may need to reduce their yield predictions, Jim Caron, the New York-based global head of interest-rate strategy at Morgan Stanley, wrote in a report yesterday. Goldman Sachs cited Federal Reserve comments and a slower-than-forecast pace of inflation in a report the same day.

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.

Different Investment Methods

There are many different factors to consider when investing. Each investment option out there can be very powerful if it is done wisely. Some of the most powerful methods of investing are Buying and Selling Stocks, Mutual Funds, Day Trading, Penny Stocks, Bonds, Real Estate, and Tax Liens.
As you can see there are many options for those who are interested in investing. If you do your research it will make your decision much easier.