£ v.s. $

97trophy

f_@_w_y wrote: »

Well... I am an international PhD student here in Economics from Pakistan.... You may find some of my reasons bit insane... Why I have confidence in USD is:

Are you ever actually awake during your classes.

Because you show no understanding of the foreign exchange market or macro economics in general

f_@_w_y

97trophy wrote: »

Are you ever actually awake during your classes.

Because you show no understanding of the foreign exchange market or macro economics in general

First of all thanks for your comments.

If we were all awake, we wouldnt have seen this FAILED ECONOMY in this country. Secondly, you are about FOREX and Macro Economics. What is FOREX? Can you predict the next BIG INCIDENT like 9/11, or any other big incident.

To me, after seeing GBP going down the drain.... I think, it is all GAMBLING. Do you really know who control the economy? We ppl just come here and criticise others... and thats all we can do. Its always the big players who control the economy.... not you or me...

malik999

Ignore the currency market the big money is in Dinosaur Clogs. They are worth a fortune.

sabretoothtigger

Im going to presume you are a genius, you know economics great and well done on your studies

However the actual markets are traded on sentiment, speculative anticipation and timing.

You have some great learning experience there but how much trading experience do you have because they are not the same and if you want to make an absolute commitment to an idea dont you want to test the water first before jumping in


Markets can move in the oppisite direction to what they should because ' the worst possible news had already been priced in.'

Bad news can mean a gain in prices, etc Thats not economics but it will make you poor

http://www.forexproject.com/buy-the-rumor-sell-the-news-part-ii/


To a trade a profit you will do better estimating and empathising market sentiment rather then calculating absolute fundamentals, you need to be as rich as Jim Rogers and friends to bet against a market, dont swim against a tide.


A example is the dollar index increasing as the economy slowly gets worse and the government borrows more cash.
That makes no sense, the dollar was weaker when housing was booming and everyone was rich

mrposhman

f_@_w_y wrote: »

First of all thanks for your comments.

If we were all awake, we wouldnt have seen this FAILED ECONOMY in this country. Secondly, you are about FOREX and Macro Economics. What is FOREX? Can you predict the next BIG INCIDENT like 9/11, or any other big incident.

To me, after seeing GBP going down the drain.... I think, it is all GAMBLING. Do you really know who control the economy? We ppl just come here and criticise others... and thats all we can do. Its always the big players who control the economy.... not you or me...

You seem to state points that don't make any sense.

You state that the UK is a failed economy but proportionately the US has bailed their economy out at least the same as the UK in terms of economic stimulus, including the amount they have set aside for QE.

Its all relative and imo there is no difference between the stimuli that the US and the UK have entered into.

BOTH economies have technically failed, not just the UK market.

The $ is also the currency of choice in bad times, but when things start picking up people will move out of the $ and back into equities. Whats more, people have already moved out of the $ in the last week and seemingly into the euro as the exchange rates against the $ have all gained weakening the $'s position in the last week.

Do you not even bother to look at current developments or just state something that you may have learnt but not practicable.

All thoughts to consider. Its ultimately your choice and I'm not saying do this or do that, just look at both the positives and the negatives before deciding to go into the $ or stay in the £.

chookie1

f_@_w_y wrote: »

First of all thanks for your comments.

If we were all awake, we wouldnt have seen this FAILED ECONOMY in this country. Secondly, you are about FOREX and Macro Economics. What is FOREX? Can you predict the next BIG INCIDENT like 9/11, or any other big incident.

To me, after seeing GBP going down the drain.... I think, it is all GAMBLING. Do you really know who control the economy? We ppl just come here and criticise others... and thats all we can do. Its always the big players who control the economy.... not you or me...

If you think it's all "gambling" then why are you bothering?

tradetime

f_@_w_y wrote: »

Well... I am an international PhD student here in Economics from Pakistan.... You may find some of my reasons bit insane...

Congrats, hope you have just started, that way by the time you have finished you will hopefully have corrected a lot of your views.

f_@_w_y wrote: »

Why I have confidence in USD is:

1. USA is much larger than UK (economy wise as well as dimension wise)
2. USA has got much more natural resources than UK
3. USA got a new president. Remember: CHANGE HAS COME
4. USA is super power.

All of this is of course true, but you might want to consider that in 1922, the British Empire held sway over a population of about 458 million people, one-quarter of the world's population, and covered more than 13,000,000 square miles, approximately a quarter of Earth's total land area. At the peak of its power, it was often said that "the sun never sets on the British Empire" because its span across the globe ensured that the sun was always shining on at least one of its numerous territories. By that metric the US is still small.
Don't be fooled into thinking this is a "How great is Britian" post, rather that you should not assume because of the US current standing that it is somehow immune to problems. The US is a superpower in decline, just like the British Empire the sun is setting on the US, she has had her time. The US is now the greatest debtor nation in the history of the world, and her debts are growing at circa $1 trillion every 15 months, not including the bailouts to come

f_@_w_y wrote: »

5. Most of the third world countries like India, Pakistan, Bangeldesh etc., follows USD. It means, if USD goes strong, there currencies go strong and vice versa. Despite of political instability and all sorts of TERRORISM bits n pieces in Pakistan, GBP has deteriorated a lot as compared to Pakistani Rupee, just because GBP has become weaker against USD.

I hope I clarified a lot of things.....:o

That is true too, but only for now, since you are a student of economics look up a guy by the name of Nouriel Roubini.

sabretoothtigger

http://op-for.com/British%20Empire.png

sabretoothtigger

Jim Rogers Biggest investment Mistake


http://www.youtube.com/watch?v=SmGRgPl74w4


He briefly mentions investing on fundamentals, etc

purch

Jim Rogers Biggest investment Mistake

Everybody else's biggest investment mistake ??

Listening to the ramblings, and taking at face value anything said by Jim Rogers !!