• support@madhedgefundtrader.com
  • Member Login
Mad Hedge Fund Trader
  • Home
  • About
  • Store
  • Luncheons
  • Testimonials
  • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

September 23, 2010 - Emerging Market Currencies Are on Fire

Diary

Featured Trades: (EMERGING MARKET CURRECIES), (FXC), (FXA)
Currency Shares Canadian Dollar Trust ETF
Currency Shares Australian Dollar Trust ETF


4) Emerging Market Currencies Are on Fire. If you think that emerging stock markets have been hot this year, take a look at their currencies, which are all blasting through to new all time highs. The Malaysian ringgit is up 11.1% against the buck this year, the Thai baht has appreciated by 8.9%, and the Singapore dollar has jumped by 6.8%.

The central banks of these countries have tried to stem the inflows to maintain export competitiveness, as Japan has done, to no avail. The ocean of money pouring in from the big hedge funds has just been too great. Friends who are using 5X leverage modest for the foreign exchange market are reporting windfall returns.

For me, this move was a no brainer to see coming, as internationally strong economies are the basis, not only for bull markets in equities, but virile currencies as well (click here for 'Time to Play the Minor Asian Currencies'). Unfortunately, there are no dedicated currency ETF's for these relatively illiquid currencies, as there thankfully are for the Canadian (FXC) and Australian (FXA) dollars. At least not yet, anyway.

The great thing for the investors in these countries, like Singapore (EWS) (click here for 'Singapore Sizzles' ), and Thailand (TF) (click here for that call) is that this creates a double leveraged effect on profits. Rising foreign shares are worth even more when their currencies are increasing in value too.

Even the Chinese Yuan (renminbi) has been strong, with the People's Bank of China kicking and screaming all the way. Concerns about a generalized dollar collapse have driven the ETF (CYB) up 2% this month. Like everything else in the emerging world, these currencies are overbought for the short term, but should continue to power on for another decade.

CYB23.png


Thailand23.jpg

Hey Baby, Can You Spare a Baht?

Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share by Mail
https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png 0 0 Mad Hedge Fund Trader https://madhedgefundtrader.com/wp-content/uploads/2019/05/cropped-mad-hedge-logo-transparent-192x192_f9578834168ba24df3eb53916a12c882.png Mad Hedge Fund Trader2010-09-23 01:30:332010-09-23 01:30:33September 23, 2010 - Emerging Market Currencies Are on Fire

tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Mad Hedge Fund Trader (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade. 

Legal Disclaimer

There is a very high degree of risk involved in trading. Past results are not indicative of future returns. MadHedgeFundTrader.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of MadHedgeFundTrader.com may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies.

Copyright © 2025. Mad Hedge Fund Trader. All Rights Reserved. support@madhedgefundtrader.com
  • Privacy Policy
  • Disclaimer
  • FAQ
Link to: September 22, 2010 - My Q3 Performance Link to: September 22, 2010 - My Q3 Performance September 22, 2010 - My Q3 Performance Link to: September 23, 2010 - Upgrading Copper Link to: September 23, 2010 - Upgrading Copper September 23, 2010 - Upgrading Copper
Scroll to top