I am not in the panic-in-the-street crowd that says the dollar will crash. The decline this year, and further back really, has been somewhat orderly and does not appear to be the source of the biggest problems we face; sub-prime, liquidity and GDP growth.
It could be argued that the weak currency has been enough of a lift for the multi-nationals to help GDP not be weaker.
Obviously, if this is even correct, I am not describing a healthy situation but it is not calamitous either and for now I think whatever it devolves into, it won’t become calamitous.
There are investment implications however. Weak growth, for example may not be a calamity but it may not get you to where you need to be either. I pick on EFA a lot but it is better than no foreign equity exposure. To be clear I don’t think is a great choice, especially with all the other options available but it should do well if foreign continues to beat domestic. Let me be clear because someone will add 1+1 and not get 2; better than nothing but worse than just about everything else.
under ticker In case you missed it Wisdom Tree is launching a small cap emerging market dividend ETFDGS that, according to an email I received, should start trading on Tuesday. The fund is heaviest in Taiwan 23%, South Africa 14%, South Korea 12%, Thailand 11% and Malaysia 10%. Sector-wise it favors capital goods 12%, materials 12% and transportation 12%. Interestingly the fund is light on telecom. Telecom is usually a good way to access emerging markets but the big phone company in most of these places is a big cap not a small cap.
The index underlying the fund yields 4.44% less the 0.63% fee means the yield checks in at 3.81% to start.
If you missed it, there has been an avalanche of commodity ETFs that have come lately. I am supposed to have an article about the Rogers, as in Jimmy, Commodity Index product line out sometime on Tuesday on TSCM, the free site, for anyone who cares.
We spent almost the entire time going back and forth to Home Depot, Walmart and people’s house’s we were buying second (or third?) hand stuff from on Craig’s List.
We had to hang blinds/curtains on nine windows/sliging glass doors fix a leak in the roof around a vent, wait in the dark for the power to get turned on on the first night and crawl through a window that thankfully was not closed properly due to a defective dead bolt that we have since replaced.
Next time should be more relaxing. Joellyn is staying another two weeks; as I leave her parents arrive…read into that whatever you like, lol.
Brett Favre, oh snap!