Dollar’s Slide Accelerates
Jun 3rd, 2009 | By Doug Casey | Category: US Dollar & Forex TradingIn the currency market, the dollar prolonged its slide by plummeting against the euro. Late Tuesday, the euro was trading at $1.4323 vs. $1.417 on Monday.
“Fund managers continue the search for yield away from dollar-denominated cash onto equities, including [U.S. ones], but especially in emerging markets,” said Ashraf Laidi, of CMC Markets.
The latest green shoot poked above ground in the form of a report from the National Association of Realtors that said pending sales of existing homes rose for the third month in a row in April.
The pending home sales index for April rose 6.7%, the NAR said. That followed a 3.2% increase in March, was the third monthly increase in a row, and was 3.2% above April 2008.
“This is yet another positive indication that the bottoming process is forming” in home sales, wrote Jennifer Lee, an economist for BMO Capital Markets. She added, rather wistfully it seems, “Now if only prices would stabilize…”
Other analysts question whether we’re seeing a trend, or merely the response to low mortgage rates, special incentives for first-time buyers, and a measure of bottom fishing.
Lawrence Yun, chief economist for the NAR, expects existing-home sales to rise about 17% by the end of the year, even as sales of new homes fall another 12%. “Since first-time buyers must finalize their purchase by Nov. 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers,” Yun wrote.
Source: Dollar’s Slide Accelerates
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.