The International Herald Tribune ( October 24) reports a mechanism by which the dollar may recover some lost ground:
Faber said if bubbles in emerging markets deflated, the dollar may rebound from all-time lows against the euro as fund managers who have invested in emerging markets shift investments to the United States.
3 comments:
Yeah, I've heard this one before and it could happen.
Still, if the emeragin market bubbles start to blow up, I don't think that anyone can say for certain where the money will end up. The United States is looking weaker than any other large economy in the world. I'm not sure global investors are looking at the United States as a safe haven anymore.
Hi Mayy and thanks for visiting. I don't think Faber is too concerned about the end position; I think he does intense research so he can ride the wave of liquidity as it roars around the world. Remember he's an former skier for the Swiss national team, and a current superbike rider: he enjoys testing his reflexes.
Sorry about the typo, Matt!
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