Comments on: Picture du Jour: Plunging dollar erodes non-US investors’ returns http://www.investmentpostcards.com/2008/03/07/picture-du-jour-plunging-dollar-erodes-non-us-investors-returns/ Prieur du Plessis’s international investment blog Sun, 29 Jan 2012 22:06:48 +0000 hourly 1 http://wordpress.org/?v=3.1.1 By: Guy M. Lernerhttp://www.investmentpostcards.com/2008/03/07/picture-du-jour-plunging-dollar-erodes-non-us-investors-returns/comment-page-1/#comment-1515 Guy M. Lerner Fri, 07 Mar 2008 13:31:33 +0000 http://www.investmentpostcards.com/2008/03/07/picture-du-jour-plunging-dollar-erodes-non-us-investors-returns/#comment-1515 PdP: I mentioned failed signals and stocks in the last post and we can apply the same principle here to the Dollar. Over the last eight weeks the Dollar should have bounced; there were positive divergences between price and various oscillators and essentially, these are a good time to get long an asset. However, aside from the fundamental dynamics in the Dollar, closes below the positive divergence bars (which I can quantify) often lead to an acceleration of prices lower. I believe that is what we are seeing in the Dollar now at least from a technical perspective. The Dollar failed to bounce; this failure will lead to an acceleration of prices lower. This will keep pressure on stocks as hard assets continue to find favor. PdP: I mentioned failed signals and stocks in the last post and we can apply the same principle here to the Dollar. Over the last eight weeks the Dollar should have bounced; there were positive divergences between price and various oscillators and essentially, these are a good time to get long an asset. However, aside from the fundamental dynamics in the Dollar, closes below the positive divergence bars (which I can quantify) often lead to an acceleration of prices lower. I believe that is what we are seeing in the Dollar now at least from a technical perspective. The Dollar failed to bounce; this failure will lead to an acceleration of prices lower. This will keep pressure on stocks as hard assets continue to find favor.

]]> By: PostOnFire.comhttp://www.investmentpostcards.com/2008/03/07/picture-du-jour-plunging-dollar-erodes-non-us-investors-returns/comment-page-1/#comment-1514 PostOnFire.com Fri, 07 Mar 2008 12:22:15 +0000 http://www.investmentpostcards.com/2008/03/07/picture-du-jour-plunging-dollar-erodes-non-us-investors-returns/#comment-1514 <strong>Plunging dollar erodes non-US investors' returns...</strong>With the US dollar falling down a precipice, spare a thought for non-US investors invested in US stocks and bonds. This post highlights some interesting graphs, comparing US dollar and euro returns.... Plunging dollar erodes non-US investors’ returns…

With the US dollar falling down a precipice, spare a thought for non-US investors invested in US stocks and bonds. This post highlights some interesting graphs, comparing US dollar and euro returns….

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