The Euro recently hit a two-year low. Meanwhile, Russia is tipping at the brink of a deep recession. Japan just received a credit downgrade by Moody’s.
These days, I don’t envy speculators in the currency markets.
Trading currencies is like judging a beauty contest in a small town, when none of the girls are particularly attractive. There aren’t that many good choices. Sometimes you just have to do the best you can.
Bitcoin is like the mysterious new girl in town, but unfortunately one of her old boyfriends has an unsavory reputation – a bit of a scandal, really. Bitcoin prices are off 70% this year, yet nobody is talking. It’s been shunned.
So, the winner (for now) is everyone’s sweetheart, the U.S. dollar. In a deflationary environment, when prices for oil and gold are falling, the dollar is able to buy more than it did last year. Furthermore, a strong dollar has also shored up investment in our own stock market.