DB Dollar Up (UUP) and DB Dollar Down (UDN) are now on the market. I am not sure how popular they will turn out to be amongst retail investors. If you want to bet on the dollar going up well maybe UUP is the way to go (not saying so definitively just saying maybe). But if you want to get long foreign currency for whatever reason (hedge, diversification or speculation) I have to wonder if the CurrencyShares from Rydex might be better.
The dollar index, which underlies UUP and UDN, is 57% euros, 13% yen, 12% GBP, 9% CAD, 4% Swedish krona and 3% Swissi. So really, the euro is driving the bus. I think some of the single currencies offer better diversification.
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4 comments:
Is there any possibility of a US$ going up in the intermediate (ie 3-10 years) with the twin towers of debt/deficit?
I know many are on this side of the trade, so I am inclined to want to fade the trade - but I just don't see any US politicans espousing raising taxes; creating new revenue streams (ie, national lottery; consumption tax; gasoline tax).
We have Medicare and a never-ending Iraq expense piling up, I'm inclined to wonder why I hold any US assets....
Is the US government making this trade all to obvious?
Roger,
What do you think of this story?
It is on ETF's and the possiblity that there are to many.
http://www.marketwatch.com/news/story/market-downturn-could-force-some/story.aspx?guid=%7B1A02BCCE-A9DD-4831-B4CF-F10C24F0E5ED%7D
Banker I posted specifically on this article yesterday
Tobot, i'll post about this later
Sorry Roger.
As soon as i saw the article I thought of you (the ETF expert!)and didn't look down to the lower post. Thanks for responding.
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