Currency Trends
Although currency issues may be minor relative to other considerations for vacation home buyers, for investors and retirees they may be the single most important factor. For the investor the currency trends will determine where and when to invest. For the retirees the currency trend will determine where they wish to stash their nest egg and in what currency it should be denominated.
There are several websites that give current and historical data on currency exchange rates. One is http://www.oanda.com/ . That is the converter used to obtain the historical data for the following chart. In this chart the US$, The Euro, and the Argentina Peso are compared. The dollar is used as the standard and is always “1”.
Although currency issues may be minor relative to other considerations for vacation home buyers, for investors and retirees they may be the single most important factor. For the investor the currency trends will determine where and when to invest. For the retirees the currency trend will determine where they wish to stash their nest egg and in what currency it should be denominated.
There are several websites that give current and historical data on currency exchange rates. One is http://www.oanda.com/ . That is the converter used to obtain the historical data for the following chart. In this chart the US$, The Euro, and the Argentina Peso are compared. The dollar is used as the standard and is always “1”.
A chart is valuable for understanding a trend because it makes movements visible. Remember that when the exchange rate of one currency drops against another currency that means that the currency is getting stronger.
This chart shows represents the exchange rates as of 6/29 and 12/29 from 6/29/02 to 6/29/07. One can see that both currencies have gained strength against the dollar since that time. Looking at a chart separately from the current events of the time can cause misperception. The Argentine peso had just been devalued and the currency was in crisis at the beginning of the chart. After its recovery the peso has actually been remaining steady against the $ and losing significantly against the Euro.
What are the indications for investors? What are the indications for retirees who receive a pension from any of the three countries and live in another? These questions will be discussed in the next blog. What do you think?
David Segrest is a REALTOR in Charlotte, NC
David S. Segrest, CIPS, CCIM, TRC, CEA
david@segrestrealty.com
http://www.segrestrealty.com/
Serving the world in the Carolinas, Serving the Carolinas in the World
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