Tag Archive | Currency ETFs

Three Reasons Canadian ETFs Have Appeal

With its array of natural resources, supply of commodities and enviable banking system, Canada remains relatively appealing and poses an opportunity for investors.

The democratically governed nation is one of the world’s largest trading nations and is a net exporter of energy.  In fact, Canada boasts the world’s second largest oil reserves, behind Saudi Arabia, as well as ample supplies of natural gas and nuclear energy.  Due to its abundance of energy-related resources, the maple-leaf nation has built strong relationships with China, South Korea and other energy-hungry nations, setting itself up to witness healthy growth in the near-term future.  Read More…

Four Plays On Europe’s Nuclear Option

As somewhat of a last resort to save the Euro and prevent another catastrophic economic event, the European Union, the International Monetary Fund (IMF) and other major Central Banks have implemented a $1 trillion emergency package.

This package consists of 440 billion Euros in guarantees from euro area states, 60 billion Euros in a European stabilization fund which can be drawn upon to provide aid to euro zone states, 250 billion Euros from the IMF, bond purchases and currency swap programs by the U.S. Federal Reserve and other Central Banks.  The plan has already gone into action; with all euro zone banks purchasing sovereign bonds in the open market, in particularly the PIIGS nations (Portugal, Italy, Ireland, Greece, and Spain).

The reaction to this measure was relatively drastic, as global markets soared.  The Dow Jones Industrial Average gained more than 400 points; the Euro gained nearly 3 percent in intraday trading; risk premiums on peripheral euro zone sovereign bonds plummeted; the price of insuring euro zone sovereign bonds against default declined and investors sold safe-haven debt and increased their appetite for risk, illustrated by a decline in German bund futures.  Read More…

Australia Expected to Continue To Shine

Australia was the only major economy to avoid a technical recession in 2009 and was the first G-20 nation to tighten interest rates since the beginning of the financial crisis, which are two reasons the nation down under is expected to shine in the coming year.

A massive government stimulus plan, which included billions of dollars in cash handouts to low and middle income earners boosted private consumption and business investment, which has further bolstered increases in consumer confidence, housing construction and public infrastructure spending.  These three efforts are expected to keep Australia’s economy in growth mode. Read More…

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