Monday, December 29, 2014

Huge Currency Moves Will Cause Trouble

We have got huge currency moves all over the world. The Japanese Yen is down over 50 percent in 2 years. The Euro Currency has collapsed, the Canadian Dollar, the Australian Dollar, the Ruble is certainly one the big ones.

We are going to have some more big dislocations in the world economy because when major currencies, the Japanese Yen for instance is one of the most important currencies in the world, when you have these dislocations, somebody is on the wrong side of the trade. I don`t know who they are obviously, but somebody is long and somebody is short. And the people that are long currencies, when huge moves like these take place, are in trouble.

If you owe a lot of U.S. Dollars for instance, you are suffering right now, wether you are in Japan, in Russia, in Venezuela, wherever you happen to be.

Saturday, December 27, 2014

Can Russia Diversify From Oil?

Russia can. Russia has vast alternative assets. They have got huge agriculture prospects, metals, minerals. Look at the map. You will see they have just about everything and they probably have things they don`t even know about yet.

You look at Venezuela, or Iran, or Mexico. It is much, much more difficult for them to switch quickly from oil to something else. But even for Russia, you do not do this overnight. Yes, Russia can change.  Will they do it quickly? Of course not. It takes a long time.

Related exchange traded fund: Market Vector Russia ETF Trust (RSX)

Friday, December 26, 2014

Looking For Russian Stocks To Buy

I am looking for Russian stocks to buy as this happens. For instance, I am a director of a large Russian fertilizer company, one of the largest in the world. They sell in U.S. Dollars, their expenses are in Rubles. This helps people like that. Now, there are not many people in Russian that particular circumstance.s but if you find companies like that, that are selling their products in U.S. Dollars and their expenses are in Rubles, my Godness! This is a bonanza for them.

I am looking at companies that are not oil related because there are plenty of ways to invest in oil but trying to find companies such as PhosAgro, which is the company I have become a director, which have these particular circumstances.

Related stocks: PhosAgro OAO(MCX:PHOR)

Related ETFs: Market Vector Russia ETF Trust (RSX)

Wednesday, December 24, 2014

Ruble Collapse: The Central Bank Is Doing The Right Things

Most governments do panic and try to do things that make the situation worse. I am very favorably impressed with the Russian Central Bank. They are letting the market do it, they are not bringing exchange controls, they are doing exactly the right thing.

Related trading instruments: Russian Ruble, Market Vector Russia ETF Trust (RSX)

Monday, December 22, 2014

Currencies: Russian Ruble Collapse



Topics: Discussing the Russian Ruble collapse

Related trading: Russian Ruble, Euro Currency, U.S. Dollar

Blog Archive