Bloomberg reports: "... Rising share prices and foreign sales at Bayerische Motoren Werke AG and Siemens AG show why it may be worth keeping the single currency even as some voters balk at the cost of rescuing Greece and demand a return to the deutsche mark. As exporters benefit from the lower labor costs and currency stability fostered by the euro’s 1999 introduction, unemployment has dropped close to an 18-year low and the DAX Index is the 16- nation bloc’s best performing major benchmark this year.
That’s reinforcing Germany’s status as a pillar of euro stability rather than a weak link as European policy makers scramble to stop the region lurching back into recession. While academics including Martin Feldstein say the Greek crisis could splinter the euro and investor George Soros urges Germany to do more to ease economic tensions in the region, the currency is rebounding. The euro has gained 6.6 percent against the dollar since hitting a four-year low on June 7..."
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Comment: I recommend going back this blog to end of May and early June and read about the howling of the euro bears. At some moment I felt that I might be the only one in the world to believe in an euro rebound. But I did not worry too much. This has happened often to me. The best deals are made against the crowd when you have a strong conviction and hold on to it.
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