Though Buffett got scared out of many of his foreign
currency positions over the last few years, intellectually he was right about the direction of the US dollar, and made decent money off it.
Not exact matches
The likely eventual inclusion of the Chinese yuan in the elite rank of «reserve
currencies» will not threaten the global leadership
position of the US dollar, which currently accounts for
over 60 % of global
currency reserves.
The authors find that knowing the direction of the change in the net
position in a particular
currency, one would have a 75 percent chance of correctly guessing the exchange rate's direction
over that same week.
Since results are in local
currencies, an investor in one country seeking equity
positions in another country would need to take into account expected change in the associated exchange rate
over the equity holding period.
Currency could be a consideration for US - based assets but even here I take the
position that it is impossible to tell how rates will vary
over 10 + years.
Their approach is to calculate excess returns in U.S. dollars from a portfolio that is iteratively long (short) the fifth of
currencies that are most undervalued (overvalued) per each of these four metrics and hold the
positions over periods ranging from one week to 12 months.
Already Buhari has started giving excuses for the abysmal performance.He attributed the quagmire to drop in the price of oil globally and cleverly laid the blame on the doorsteps of all Nigerian accusing them of relying solely on oil.All renowned rating agencies including fitch continue to downgrade Nigeria ever since Buhari took
over and it is projected that Nigeria will not be able to repay its debt obligations.Fitch for instance downgraded Nigeria's longterm foreign
currency issuer default rating to B + from BB - and longterm local
currency IDR to BB - from BB.The general
position expressed by almost all the Briton wood institutions is that Nigeria's fiscal and external vulnerability has worsened under Buhari and it is projected that the government's general fiscal deficit could grow up to 4.2 % by the end of 2016 after averaging 1.5 % under the previous regime.A recent capital importation report by Nigeria Bureau of Statistics confirms that, last year, the country recorded total inflow of capital into the economy stood at $ 9.6 billion which was a 53 % drop from previous year and the lowest recorded total since 2011.
11:42 - Mundell says uncertainty
over Scotland's
position in the EU and questions
over which
currency it will use will hinder inward investment.
Managed futures as an asset class are historically non-correlated to the stock and bond markets
over long term periods and encompass a wide range of trading strategies (generally taking long / short
positions in futures contracts on equity indices, commodities, financials and
currencies).
If you do «repatriate» funds this way, remember that the next time the loonie rises, heading towards parity, you'll want to start rebuilding those
positions in U.S. securities, so you can ride the
currency cycle all
over again.
Currency could be a consideration for US - based assets but even here I take the
position that it is impossible to tell how rates will vary
over 10 + years.
I personally prefer using unhedged
positions because (a) It is cheaper (b) In the long run,
currency effects will average out (c) The value of hedging is questionable when a basket of
currencies are involved and (d) While
currencies on their own have zero expected return
over cash, adding them to a portfolio reduces volatility and offers diversification benefits.
Our direct
currency positions have yielded $ 2.3 billion of pre-tax profits
over the past five years, and in addition we have profited by holding bonds of U.S. companies that are denominated in other
currencies.
«We are declining comment,» said an SEC spokesman by email, in response to questions regarding whether the agency had a
position on the
currency or if it had jurisdiction
over Bitcoin trading in the first place.
The yen has been the number one
currency by volume worldwide as far as bitcoin, and South Korea has taken the third BTC volume
position behind the U.S. South Korea also commands the most bitcoin cash (BCH) volume, as the won is
over 50 percent of the global market on any given day.