Foreign Currency

There is nothing in the dark that isn’t there when the lights are on.

It seems you can ignore warnings of an imminent stock market crash. The US Fed is happy for a bubble to form, and it’s not even worried about any subsequent bust. No longer is the US Fed beholden to fears of irrational exuberance, and commentators who point to rising risks may simply be premature, if not completely missing the point of ignoring who is in charge. continue…

by Roger Montgomery Posted in Economics, Foreign Currency, Insightful Insights.

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The make up of consumer price index (CPI) data in many countries is not necessarily closely related to the cost of living. For example, in the US, ‘everyday’ consumer expenditure on food and energy has less than a 25 per cent weighting on their CPI, and is excluded altogether from a ‘core’ inflation. continue…

by David Buckland Posted in Economics, Foreign Currency, Insightful Insights.

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I have just returned from a short trip to the US, where I saw Bubba Watson win the US Masters at The Augusta National Golf Club. While this is indeed an extraordinary sporting event, I think I now have a better idea why US corporate profit margins (as a percent of nominal GDP) are at record-high levels. continue…

by David Buckland Posted in Foreign Currency, Insightful Insights, Value.able.

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We have written about China Rongsheng Heavy Industries, one of the largest shipbuilders in the world, on several occasions. (See our posts from August 2012, and July 2013). continue…

by David Buckland Posted in Companies, Financial Services, Foreign Currency, Insightful Insights.

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My friend and Joint Chief Executive of Philo Capital Advisers, Ashley Owen, recently penned this piece on the Aussie dollar. As you know, we have suggested since US$1.05 that Australia needs a lower currency. Well, according to Ashley, we’re going to get one. continue…

by Roger Montgomery Posted in Energy / Resources, Foreign Currency, Insightful Insights.

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Since the beginning of 2014 the iron ore price has declined by around 20 per cent, from US$130-$135/tonne, to US$105-$110/tonne. Unusually, the Australian dollar to US dollar exchange rate has, over this period, appreciated slightly to just over US$0.90. continue…

by David Buckland Posted in Energy / Resources, Foreign Currency.

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Remember last year all those analysts saying that because the price of iron ore hadn’t gone down in 2013 that it wouldn’t? continue…

by Russell Muldoon Posted in Energy / Resources, Foreign Currency.

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The US Federal Reserve target rate is one of the most influential interest rates in the US economy, and is applicable to the most credit-worthy institutions when they borrow and lend overnight funds to each other. continue…

by David Buckland Posted in Economics, Foreign Currency, Insightful Insights.

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In recent weeks, there has been a lot of commentary on the decline of certain emerging market currencies. Not unlike the Swiss bank loans that were heavily promoted to Australian farmers in the mid-1980s, a declining currency can have a devastating effect on the value of the outstanding external principal borrowed. continue…

by David Buckland Posted in Foreign Currency.

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In this interview with Peter Switzer, broadcast on Sky Business, David Buckland takes a look at the issues facing investors when it comes to emerging markets and the decline of their currencies.

by David Buckland Posted in Economics, Foreign Currency, TV Appearances.

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