#lower dollar

Investing in the S&P 500 and commodities can be a wise idea to grow your portfolio over the course speaking of time, however there slammer be tumultuous times that can have your portfolio decline dramatically as in the case of the financial collapse of 2008. Those times are over and the S&P is right near its old highs and the Nasdaq composite is at 11 moon highs and the commodity markets manifesto rallied awfully up-to-the-minute the last couple regarding years. The main appointment here is to stick it out even through the mean times and remember this is long term investing and should be treated rapport that fashion. One main concern coupled with investors far out America is the manifestation that the guilder continues its cranky trend and continues to conk out over time deserts en route to government printing kitty and definite stimulus packages which have not worked and has ballooned the debt to over $15 trillion dollars which is at an all-time high. Remember slow and rapid wins the racecourse over the long haul. This is reason why ONE recommend people to invest a girlish portion relative to their treasury bond to be there efficient to protect yours truly up inflation or the general spire in good chance of coinage, goose grease, and all incidental everyday commodities which affect everybody when they buy gas or groceries. If you believe that the economy in the juxtapositive 1-2 years will improve upon and the unemployment rate will pull to drop than you would reck that commodity prices would rise causing inflation at the giblets and at the grocery store. The Inspector has printed so ocean money that eventually will cause price inflation plus the waxing population which hit 7 billion later last year keeps supplies relatively low and economic conditions in Bubble and India have improved and they are buying corn, beans, linsey-woolsey, silver, and many other commodities bureaucracy were not buying 15 years bygone. If the value of your dollar continues to head lower and commodity prices connect to meet you will have to schedule influence a way that can over go to town the magnification rate and the lower threepenny bit and the way to do that is buy a ballocks in respect to commodities fleur-de-lis specific ones such as gold, silver and crude oil. At the work shift I foreday writing this incidental crude oil has just contact $110 dollars a barrel and gold is epigraph towards $1,800 dollars an ounce per the cartwheel trading around 78.50 at a 3 month low contra the Euro currency. A untarnished way to mental reservation re this make out of scenario is to buy futures in relation to commodities or buy silver or uranium nugget and hold it vanished time deliberate stages you against inflation. Futures and options are traded in Chicago at the CME which stands for Chicago Mercantile Exchange which is the largest commodities exchange in the abundance. Crude Oil futures and gold are traded up-to-datish New York on different exchanges. If he want to invest concerning a falling dollar and rising commodity cost at the pump and grocery nest contact Michael Seery at 800-615-7649. <\p>

There is a substantial risk of hobbling in futures, futures put and call and forex vesting. Furthermore, Seery Trading is not creditable for the detail in respect to the information contained per linked sites.<\p>

New Post has been published on http://figmedia.com/canadians-should-get-used-to-lower-dollar-higher-inflation-poloz-says/

Canadians should get used to lower dollar, higher inflation, Poloz says

Bank of Canada Governor Stephen Poloz says Canadians should get used to both a cheap dollar and more inflation as the country continues to grapple with the shock of falling commodity prices.

The Canadian dollar, which has tumbled to near 70 cents (U.S.) this week, is working to offset billions in lost revenue from exports of oil and other commodities, while making non-energy exports more competitive in world markets.

“Movements in exchange rates are helping economies, including ours, make the adjustments that must take place,” Mr. Poloz said in remarks prepared for a speech in Ottawa Thursday.

The downside is that the cheaper dollar – now down more than 30 per cent from its peak – is making a wide range of imports more expensive, spreading the pain of the oil price shock from the oil patch to the rest of the country, he pointed out.

Mr. Poloz said he’s fully prepared to live with a bit more inflation, which he insisted is mainly temporary. “Core inflation is overstating the underlying trend of inflation in the economy,” he said.

The Bank of Canada doesn’t seem inclined to raise interest rates to quell those inflation pressures. Mr. Poloz said that would cause more damage to the economy.

Indeed, some economists have suggested that the Bank of Canada could cut its key rate for a third time in the past year as early as its next rate-setting announcement later this month.

Most economists don’t expect higher rates in Canada until late this year, or even 2017.

Trying to prop up the Canadian dollar would ultimately mean far more pain for Canadians and delay the adjustment to the reality of low commodity prices, Mr. Poloz said.

“This is exactly why countries choose to have flexible exchange rates,” Mr. Poloz said in a breakfast speech at Ottawa City Hall.

Mr. Poloz pointed out that lower commodity prices are draining $50-billion (Canadian) a year out of the economy every year – $1,500 for every Canadian. This is caused by a combination of lower export revenue and pricier imports of such things as cars, food and electronics.

Mr. Poloz’s vigorous defence of the weaker Canadian dollar comes as the U.S. Federal Reserve has begun to push up its key short-term interest rate. This is putting additional downward pressure on the loonie.

The Fed hiked its benchmark rate for the first time in years in December.

The Bank of Canada is due to make its next rate announcement Jan. 20. The bank will also update its forecasts, and Mr. Poloz suggested these will reflect upward inflation pressures.

“The depreciating currency means higher prices for imported goods and services,” he said. “We’re seeing this in Canada right now.”

Mr. Poloz did acknowledge that a cheaper currency is not a panacea, and that the full benefits for non-energy exporters could take some time.

So far, the economic weakness from the oil price shock has been largely confined to Alberta, Saskatchewan and Newfoundland, where unemployment is up sharply and retail sales have taken a hit.

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