My friends ask me why I invest in currencies. Well the past couple weeks is your answer. That has to hurt even the most seasoned equity traders and I can just imagine what my old firm is telling clients - thats inbetween the margin calls of course. Though I am not laughing as my own equity portfolio got crushed & my brokers call of 6,000 only a few weeks ago looks a long way off now... a long way off.
Not that currencies are easy but the ability to be nimble has to be on the side of FX. The whole world has been short commodity currencies ever since oil and interest rate differentials began to fall not to mention most other commodities and the last week has not let me down (lose some / win some as the saying goes). Just look at the GDT milk auctions to see how well thats been going. I still buy my one carton every day !
I am not forecasting anything here, but for all those aussies out there please ask yourself how the housing market is going to hold up in Sydney. Most of the foreign buyers just lost one big chunk of their wealth. With banks probably in need to protect their profits, now is probably a good time to consider downsizing before the return on that asset class dissappears as well. Investment basics here but I'd rather lose 20% on 1mm then on 2mm - it is just a roof and four walls after all and just a matter of time.
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