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Turbulent markets

14 Comments

A woman looks at screens displaying stock quotes, the Nikkei average and the yen-dollar exchange rate outside a brokerage in Tokyo on Tuesday. The yen surged to a seven-month high against the dollar as investors fled risk amid a global stock market rout.

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14 Comments
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This concept of fleeing risk by buying Yen or Euro mystifies me. also exactly which markets aren't risky just now? even gold has hardly moved in all of this turmoil.

3 ( +3 / -0 )

The Canadian dollar has dropped on the US, and in regards to the Yen more than 10 cents in a few weeks, and 5 cents in the past three or four business days alone. Some media back home are starting to call it "The Northern Peso". None of this is going to stop until oil recovers. Some say at least another week or two of this tumbling, and after that some currencies won't recover for some time.

2 ( +2 / -0 )

Gonna be a roller coaster for a while I think.

2 ( +2 / -0 )

This concept of fleeing risk by buying Yen or Euro mystifies me.

I believe this is just a quoted out of an article template, as is often the case for news reporting these days.

I think reality is more like this - selling yen and euros for dollars has been a profitable play for speculators recently. But speculators only make money when they exit their positions.

The recent bubble pop in Chinese stocks and yuan un-pegging from the dollar have been pointed to as reasons to believe the US central bankers won't lift interest rates off zero, after all.

This change in perception has seen the dollar sell off, which in turn encouraged more speculators holding profitable positions to close them and take their profits.

Like oil on the fire, you also have speculators who were late to the dollar buying party closing out their losing positions.

And so the yen and euro were bought. Not because they are safe havens. But precisely because they haven't been safe havens. Unless one is a day-trading speculator, buying either as a "safe haven" in recent times would generally have been a loser.

-1 ( +2 / -3 )

I have no sympathy with people who lose money on the stock market. Especially at the upper levels where people turn a blind eye to what the rest of us know as "insider trading."

It's gambling and should be taxed as such.

0 ( +2 / -2 )

Well Bertie, lots of public pension money is "invested" in stock markets, so that taxation you propose would bite us all. If we believe we'll ever see some pension money, that is.

0 ( +1 / -1 )

Don't worry. Be happy,,,,,,.

0 ( +0 / -0 )

I agree with Berty. Investing is one thing by supporting the economy while speculating is another one, which I call gambling and should be taxed as such.

0 ( +1 / -1 )

Please also give website address of the site which provides live stock quotes of Japanese companies in English for the benefit of the overseas viewers.

-1 ( +0 / -1 )

Monday, our stocks dropped 1000 at opening. but rose steadily during the day. Don't panic. this is just an adjustment that should have happened long ago. " Growing pains?"

0 ( +0 / -0 )

China can massively confuse the world for another two weeks so FED doesn't have to go for an early interest rate rise.

0 ( +0 / -0 )

fxgal,

Well Bertie, lots of public pension money is "invested" in stock markets

I don't feel very good about that either.

Maybe they should have told Nixon to stick it and kept the gold standard. Not perfect, but it kind of worked.

0 ( +2 / -2 )

The Renminbi Yuan is still pegged in a modified way to the dollar. It is not unpegged. The Central Bank sets a daily trade exchange rate for the RMBYuan : USDollar with an upper and lower limit against which the Bank will act to control the rate of exchange.

This partly is why when China devalued the RMB Yuan it caused negative reactions. Because China already manipulated its exchange rate with the USDollar anyway.

1 ( +1 / -0 )

And that's why stocks are more risky than bonds. Anyways I can't afford any of them so the finance market could fall over and I couldn't care less.

0 ( +0 / -0 )

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