[OpenFX] Who's the Fairest of Them All?
Monday, February 28, 2011
Hi Traders,
Maybe you know this, maybe not, but "The Economist" tracks the weekly economic statistics of 43 countries. Out of these, two (that's right, just "two"...as in dos, II or 2) have positive trade and budget balances. But just one (that's right, just "one"... as in uno, I or 1), Norway, is the only country on the Organization for Economic Co-operation and Development "super star" list; so, when it comes to the 43 countries tracked by the mag, it is truly the "fairest of them all".
Hmmm... only one with a surplus? Really?
Uh-huh.
Why might this be important? Well, here's some (good) news, which I received in an email, today:
No other country among the world's mature or even emerging economies can claim twin surpluses. That's huge. It's important because drunken nations are now fighting sovereign debt crises in the EU. These countries are fighting with the market as bond investors continually demand higher rates to take on their risk debt. (And) for diversification purposes, my favorite currency remains the Norwegian krone.
Now, considering Norway is a major oil exporter and it's the largest oil and gas exporter in Europe (the ninth largest producer worldwide), which means, if you're bullish on oil, the Norwegian krone an oil play... a longer-term "buy". There are other reasons to like the krone, but this alone, from a fundamental perspective, is enough to warrant a good look at the charts to see what you see.
Just a heads up; thought you might be interested.
Cheers,
Clay
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MARKETPLACE
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