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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (126457)	12/18/2016 8:37:09 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 217543

I view foreign exchange rates as a traveler. When the Euro cost $1.30 or more, the place over-priced. With the Euro at $1.08 it feels about right, maybe it could be $0.97 where the Euro first began trading. I'm sure you know this first-hand. And we all know that markets tend to over-correct, so I can't imagine why the Euro might no decline to $0.90 for a time. Anyone who travels there will tell you the Swiss Franc is currently very over-valued. There's no other reason why hotels and everything else is so much cheaper on the French side of Lake Leman or why the shockingly high prices in Zurich become normal merely by traveling a short distance into Germany. When I opened a Swiss bank account years ago each Swiss Franc cost $0.47 and when I later closed the account I received more than one Dollar for each Swiss Franc. It was the same in Australia in 1996 when their Dollar cost only $0.48 — it was as if everything in Australia was 50% off. So I moved money to Australia, initially hoping to buy a home there. I went too deep while skin diving in the Great Barrier Reef and got moisture inside my Cartier watch, killing the mechanism. I had Cartier in Sydney replace the watch mechanism on the inside for 2/3 less than it would have cost me at Cartier in Los Angeles at the time. They may have purchased that part when the Australian Dollar was cheaper still. There's other factors like balance of trade problems which can push a currency out of line, even for a fairly prolonged period of time. But when you visit, you can tell if a currency is priced correctly compared with your home nation and eventually any disparity will correct. In 1983 I had a trip planned to Tahiti when the previously over-priced Mexican Peso declined 70% in value. So I changed my plans and indulged in a month of luxury, including purchasing art in the best galleries, which I could not have otherwise afforded at 28 years old. We kept most of the luggage in a hotel in the Zocalo in Mexico City for $12 a day while taking side trips. A long round-trip flight from Mexico City to Acapulco or Cozumel on Mexicana was about $62 per person. It was tremendous.