Quoted: Please tell me your opinion. It seems like US currency will continue to devalue against the Euro |
It's anyones' guess. No one knows.
My guess is that as the economies of the world worsen, Europe has as much or greater exposure to bad debt, deficits and barriers to production as the US, so Europe will lead the decline and the currencies will track or fall vs the $, not increase.
It's late, I've been working on a BOL all day until now and I have other reasons that I can't articulate. A search of the financial boards should give more ideas than you can process.
The UK isn't on the Euro but is a representation of Europe in general and if you compare the FTSE [a London stock exchange index] to the S&P, the FTSE has actually fallen slightly more than we have this year. They also had their first serious bank run at the end of last year -and handled it in some people's opinion, poorly.
Germany's DAX is down somewhat more than the FTSE.
If you factor in the devaluation of the $ vs their currencies, their decline is significantly magnified [greater]. Their 401k's have turned into 201k's vs many folks 401k's only turning into 301k's here.
I've pondered your question myself and watch the European mkts every day and have decided to stay in the $ at the present because if the SHTF, it's likely to be worse outside the US in the developed Western nations than here.
But this is only a guess and probably isn't worth the time it took me to type it and it's likely someone will be along to make a big deal out of it nontheless.