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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: MoneyPenny who wrote (62647)	4/24/2005 10:34:08 AM
From: KyrosL	Respond to of 74559

I am doing the same thing as you. I reduced my holdings to a minimum when the discount to NAV almost disappeared recently, but I increased them again when it again approached 10% a few days ago. The conventional wisdom is that the AUD is overvalued and it will soon fall vs the USD. I no longer think this is true -- at least in the longer term. Australia may be running a trade deficit now but it also runs a budget surplus and its long term prospects are a lot brighter than the US, because of its position, its natural resources and its superior governance, IMO. I see FAX as a good hedge against the USD, that also provides income as a side benefit.