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Wednesday, November 24, 2010

The reality of EU and its implication on the Euro

First of all, HAPPY THANKSGIVING to all of you. We are eager to flying to CA to visit our son for the next few days. So no long blog today. However, I really think you should read this report regarding the EU very depressing situation. As I said before in my blog, I doubt the Euro will even survive for another 10 years and I'm more negative now when seeing what is going on. I just hope Portugal will not deteriorate so fast to impact on our planned visit to Lisbon in the coming Christmas time.

I hope you have bought EUO, an ETF to bet against the Euro strengthening, which I have told you several times. This is a big trend trade, for which you should not be so much caring about the day to day fluctuations of its price. Even though my timing was not perfect, my positions are definitely profitable now and will be more over time, since I'm ridding correctly with a big trend. Coincidentally I also shorted an index fund (EWP) for Spain stocks as I have got a very negative opinion on Spain about its economy for some time. It was again against me initially as I was also a bit early. But now herd investors have suddenly awaken and realized it was not a good idea to long Spain stocks. So about 40% gain so far for me to short Spain. This is the beauty of identifying a trend and stick to it.

Wish all of you a very peaceful and happy long holiday weekend!

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