Tuesday, November 16, 2010

Yesterday...

the news was all about other countries that depend on exports to the U.S. complaining that we need to do something to strengthen the dollar, so they can continue to rely on our purchases of their goods to keep their economies afloat.  Today, the situation is reversed - the dollar is gaining against other currencies as news comes out about possible debt problems in Ireland and inflation in China.  I guess those other countries decided to do something themselves about the weak dollar, like bring on the appearance of possible loan defaults and inflation to bring investment money back to the relative safety of U.S. treasuries.

Admittedly, I have been out of touch with the markets lately, but am working to get up to speed again.  But, based on the comments I read following this article, investors appear to be more irrational, and perhaps less educated, than I can ever remember seeing, making it a real challenge to understand exactly what it is that is driving the markets.  Mostly speculation is my guess.  And the negative comments are likely from those who guessed wrong.  I say, leave the speculation to those that specialize in that sort of thing and invest in value for the long run, a subject that I intend to delve into deeper in later posts.