The New Carry Trade?

HenryTo · Posted: Mon Jul 11, 2005 7:22 pm Post subject: The New Carry Trade?

A great "Outside the Box" article from John Mauldin on the potentially emerging Euro carry trade:

http://www.investorsinsight.com/otb_va.aspx?EditionID=153

HenryTo · Posted: Tue Jul 12, 2005 6:14 pm Post subject:

James,

The "Share Croppers" article from Warren Buffett was definitely interesting but while I was reading through it, I kept thinking and saying to myself: "Is it really that easy?"

The currency markets is a $2 trillion a day market and the current account deficit is just one small part of the equation - especially with the current proliferation of macro hedge funds.

I realize that Mr Buffett's foreign currency position is supposed to be a long-term position but this investment for him is definitely a huge "style drift" and that is making me wary.

Henry

James Teng · Newbie Joined: 30 Apr 2005 Posts: 5

If he is right, this is bearish for US exporters.

JT