headhonchoII wrote:These things are kind of hard to predict. Japan has a really strong yen but it's economy is not in good shape. The USD is getting stronger but the economy is only sputtering along while debt climbs. Even with QE3 I would expect the USD to get stronger not weaker though, as flight to safety continues. The interesting thing about QE1 and QE2 is that most of the money did not actually make it into the real world, it just propped up balance sheets or boosted stock and asset values. There does seem to be a direct correlation between QE and stock indices but not with currency valuation.
The Taiwan NTD is getting stronger relative to many other Western currencies, but it has a limitation due to its export oriented economy. The Franc was devalued overnight to keep a type of parity with the Euro.
The only thing I can recommend is diversification, but I would stay away from certain currencies for sure, primarily the Euro and the Aussie dollar!
Thats why the companies in the USA are salivating at the thought of another QE.
So they can keep hoarding cash while laying off workers and giving themselves more bonuses. Because heavens knows they deserve them, those poor CEO's.