US goods cheaper abroad?

This stock is not something that would necessarily have to do with the dollar directly, although their is some exposure and since I do not have a page that directly fits this company, I thought here is as good as any. PWAV has been a monster stock. I put a small amount on it after following it for the better part of seven years. I bought this one around 90 cents a share and in the past year of two has responded by a 214% gain. Their are many reasons to own PWAV and it seems some of the bigger names thinks so two. PWAV is a play on 4G. As the US and other countries get into faster networks as handhelds become more popular, it seems that many are going straight to 4G networks. PWAV is a way to capitalize on this as it is a builder in the center of this expansion. This company has quite a bit of debt, so it is an agressive investment, but as many thought they would go under during the recession, it seems they have survived. When I invested in them it was for several reasons. The first is 4G, the second is their decrease in expenses by moving their factory overseas, and lastly their are few companies that do this particular technology that one can directly invest in. Three years ago I wrote on this stock and it can be accessed by going to www.updown.com, and going to legmaker and clicking on analyses. Great place to join for practice with stock trading also.

Dollar better than the Euro?

Although there is quite a bit of pesimism with respect to the dollar, it seems the euro may have it worse. As the US still has difficulty in finding a bottom in house prices and loans are still defaulting, it could be said that the euro could be worse. Much of what has happened in the US is also happening in Europe. The difference is the actions that have been taken by the two groups over the same period of time. Europe generally tries to keep its hands out and wait out problem times, as where the US economy is run with more aggressive moves. The US has dumped trillions to help induce growth, and although the world is not happy about it, one may summize that it could help the US move out of this problem. It is a guess as to how much this helps or hurts the US economy, but no matter how you look at it there has been better moves in the US stock market as opposed to Europe as a whole. It these moves speed the unraveling of foreclosures it would be safe to say it will take longer in Europe. Look for the dollar to increase against the Euro in the short term, although it should lag many of the emerging countries.

Dollar should continue to strengthen against Euro

The dollar still does not look great, but compared to the Euro it has been performing well. I would not get into this area right now as there has been a selloff the past couple of weeks, but if you have to be here, I would buy and not short. There are far to many negative issues that could arise from Europe.

Trade is back on

The Euro seems to have trouble going forward. The PIGS (Portugal, Italy, Greece and Spain) should weigh down the Euro for some time, and although the dollar will be pressured with its own problems, such as the deficit, look for there to be much less trouble. At the very least the dollar has stabilized, and as long as the US can pay down debt so that the interest doesnt become to great, we should see the dollar moving up here. Against other currencies there is still a major problem with the dollar, especially contries that have large assets with respect to commodities.

TRADE IS OVER

With recessions ending in Europe, it seems much of this trade is over. But the dollar does seem to have a bottom.

The Euro Looks Awful

Investors think the US has problems? Look at Europe, they spent entirely too long waiting to cut rates. They seem to be a little preoccupied with inflation when deflation seems to be the short term problem. The US should lead the world out of this, but don't forget China as they saved all that cash just for something like now. It was not long ago that the US dollar was half that of the Euro and now its 1=.79. This number could reach parity.

The Euro will continue to weaken

I wrote this June of 2008. It turned out to be true as the Euro keeps getting beaten up as the US dollar has shown some impressive strength. Europe has one major problem, and that is that it didnt due enough, quickly enough to protect their financials. They are throwing cash at the banks but have effectively lengthened out their recovery time, by keeping interest rates up. The US dollar will retreat in a big way, but not like the Euro will. All developed nations will experience massive inflation in the months and maybe years ahead. This will hurt any country that does not produce the things that hurt when you drop them on your foot (commodities). Europe also has a major housing problem, just like the US. Their prices went way up, and they also lowered the amount of documentation needed to obtain loans. Countries such as Canada, Brazil, and Australia could see major gains in the upcoming years, while gold, silver, corn,and iron ore will see their prices go up. This is an evolution that we have not seen and I am guessing that the US will come out ok, but the best play is inflation going forward as soon as the threat of deflation is gone.