Thursday, October 09, 2008

Currency and Reserves

Bloomberg has this story (click on title below). I've been watching the stocks of the Latin American Complex get ripped apart. I have sector chart with just South American stocks. The banks were the first to lead. Stockcharts is down, otherwise I would put an SDA chart up which is mentioned in the article.


Latin American Banks Dig Into Reserves to Salvage Currencies

By Adriana Brasileiro and Andre Soliani


Oct. 9 (Bloomberg) -- Latin American central banks are being forced to draw on record foreign reserves built up during the six-year commodities rally to stop their currencies from sinking in the worst financial crisis since the Great Depression.


I do not have as good a command on the role of currency refers on foreign stocks. But the charts know! I think that you will find the chart interesting, and if you are like me and do not have as good a command on this issue as you should if you are doing investing in these types of firms, this article may be a wake up call.

I woke up parched. As I laid in bed wondering if I should get up, my brain governed by my parched body seized on the simple fact that I had enough ingredients to make a decent limeade (from concentrate). I'm no good this time of day. But as I was hydrating, I was reading. And...in reading I wanted to share this.

Lesson for you: stay hydrated properly and understand currency risk in changing times. Night, night.

2 comments:

Anonymous said...

Leisa said..

"The metal to have is the one that has a trigger..."

LOL... I like that one...

So back and forth action here really the past 2 days - NASD & TRAN a little relative strength - still some sellers though - yet hard to believe people are taking a loss after the huge drop...

Though it does look like some insurance companies are really going to take a hit... doubly hit by both what they insured and their declining portfolios.

Pension funds must really regretted piling into the commodities at the top - a sad way to lose the general publics money.

And funny with the US saying it may buy bank stocks (common and preferred) - when Japan tried this the market crashed...

Of course if all the governments say they will buy stocks - then no individual market can crash by itself - so it seems the US is in effect causing a crisis elsewhere forcing every government to do what the US does.

Everywhere I turn is talk of a botttom...

DOW almost reached 9000 this morning - quite a drop from 10500 where all the 'Trading Wizards' said buy...

Anyone think the 2002 trading cycle lows are in play?

DOW 8000
NASD COMP 1500
S&P 800

At the moment there seemed to be buying interest as the S&P got near 950

I await the interesting speech at 1:30 by Fed's Stern on the 'Financial Shock'

nice...

Anonymous said...

Indeed the 2002 cycle lows could be in play...

Patience is a virtue.. I guess..

Oil $85 - that's nice too.

Swaps to be unwound over the weekend...

People now realize it has been a crash - not a buying opp...

'Wizards' should have known this...

At least it won't matter if they remove the short selling rule now LOL

nice