Investors seek safe harbour from US downturn

With the richest of the rich shorting the greenback, is there a place to hide in case of a US financial crisis?

Much has been said and written about the US budget and trade deficits and that, as a consequence of these, the US dollar is following a one-way street down hill. After all, even the richest of the rich source Forbes, Bill Gates of Microsoft and Warren Buffett of Berkshire Hathaway are short the greenback, diversifying or hedging their bets into other currencies. However, to take the euro as the most eligible alternative currency to protect against further depreciation of the US dollar has not been a profitable trade for most of the period since the beginning of 2004. While the calendar year 2004 saw the euro appreciate by 7.9%, theĀ first half of...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222