Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: NOW who wrote (104529)	11/19/2009 6:09:52 PM
From: The Vet	Read Replies (1) \| Respond to of 116555

On the US market you could short FXA but you would be responsible for the dividends while the position was open, which are significant while the Australian interest rates remain so much higher than the rest of the world. However once the AUD breaks, it tends to have a fair bit of momentum so a careful short should be OK. There are also a few Australian companies that have listings in the US and Canada which would drop with any currency weakness and able to be traded on the short side. Of course a USD collapse could put you on the wrong side of such trades, but any US market drop tends to be duplicated on the ASX so that wouldn't be a problem for short positions.