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The world needs more then one central marketplace -- mexican peso
| The world needs more then one central marketplaceWhat is the first thing financial planners tell individual investors when they invest in the market for the first time? Diversify. If one investment tanks then the others can pick up the slack. The same should hold true for countries too except at the moment the only real place to sell exports and make a killing is America. As the article shows, America is in the tank and thus is affecting other countries who make money by exporting goods and services there. Since there is no alternative market for exporting countries to make a lot of money from, then those countries are affected the same as America. This is why I see the rise of China as not necessarily a bad thing; the world will have two giant markets to export to and therefore will diversify to hedge against risk, just like the individual investor needs to do.Link: Hedge Funds Pare Bullish Peso Bets as Record Rally Fizz |
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