Currencies

[winston_blade]

Is anyone here in different currencies? Which ones are the most stable? I didn't see a thread on the front page about currencies and I think this forum needs one. What are your thoughts on other currencies.

[Cowlesy]

I'm in the CHF (Swiss Franc) using the ETF, ticker FXF.

It's a boring, but stable currency that has been doing well as people retreat to safe-haven currencies.

I think the Euro is in a bubble.

Yen ETF is FXY if you like the Yen. I just think Japan is too export dependent and a slowdown in the U.S. could really hurt their exports.

[Corydoras]

Stable compared to what?

[Cowlesy]

I think up to 1999 or 2000, the Swiss Franc was required to be backed by 25-40% in gold. I think around then there was a constitutional amendment or something to do with the nazi's gold that made them de-link the Franc from gold, but the fact of the matter is the Franc is known as one of the stablest currencies relative to older fiat currencies like the USD/EUR etc.

If you're interested in speculation, people say that the Brazilian Real is a good play due to their high amounts of commodity exports.

[AceNZ]

I like the currencies of countries with commodity-oriented economies: AUS, NZD and CAD. Adding the JPY and/or the CHF make a good balance as the carry trade unwinds. CNY (yuan) has good long-term prospects, although it could be a bumpy road in the near term. SGD (Singapore) is another good one.

Even though it's been on a roll, I don't care for the EUR. The GBP is also likely to continue down, along with the USD.