Three new iPath ETNs for currency plays

Olav23 · 05-11-2007, 09:44 AM

iPath(SM) EUR/USD Exchange Rate ETN (ticker ERO)
iPath(SM) GBP/USD Exchange Rate ETN (ticker GBB)
iPath(SM) JPY/USD Exchange Rate ETN (ticker JYN)

Does anyone else get the feeling that ETF/ETNs are the new contrarian indicator? They always seem to be introduced on market tops

Brat · 05-11-2007, 01:19 PM

I don't think the yen is topping out right now.

What I do think is that we are starting to think about the dollar vs other currencies so the investment market is responding.

Olav23 · 05-11-2007, 04:11 PM

when you say we, do you mean what those in the industry refer to as "dumb money"?

brewer12345 · 05-11-2007, 04:24 PM

Hey, its a tool. I don't need a table saw and wouldn't know what to do with one, but its nice that I can always get one if I need it.

Brat · 05-11-2007, 04:26 PM

As Brewer once said, currency has a low yield. But the value of the dollar vs other currencies has been a topic on the stock market channels. There are funds, such as Permanent Portfolio who do hold currency positions. Good/bad, beats me. Brewer talked me out of currency funds.

However, countries with currencies improving compared with the dollar might be good equity plays. For example one might buy an Australian ETF instead of the Australian currency ETF. On one of the boards I frequent a poster was in a dither with the fact that a supposedly Australian ETF had New Zealand companies. IMHO one should always review the holdings of any fund. If it doesn't have what you are looking for don't buy it.

brewer12345 · 05-11-2007, 04:31 PM

Aussie stocks might or might not be a good idea, but if you wwant to get in on a run of the AUD you are probably a little late.

In inflationary times and times when the USD is dropping, commodity producers and tangible asset owners are good spots to be. It won't matter what currency they do business in, so you don't have to outguess the currency markets to do well.

Brat · 05-11-2007, 05:24 PM

Quote:

Originally Posted by brewer12345

Aussie stocks might or might not be a good idea, but if you wwant to get in on a run of the AUD you are probably a little late.

I agree it is late for the big run-in AUD, I was using it for illustration purposes.

Several months ago I purchased an ETF with a good hunk of AUD in it's holdings.

[we don't have a 'If your'e happy and you know it clap your hands' icon]

05-11-2007, 09:44 AM	#1
Olav23 Recycles dryer sheets Join Date: Jul 2005 Posts: 423	Three new iPath ETNs for currency plays iPath(SM) EUR/USD Exchange Rate ETN (ticker ERO) iPath(SM) GBP/USD Exchange Rate ETN (ticker GBB) iPath(SM) JPY/USD Exchange Rate ETN (ticker JYN) Does anyone else get the feeling that ETF/ETNs are the new contrarian indicator? They always seem to be introduced on market tops

05-11-2007, 01:19 PM	#2
Brat Thinks s/he gets paid by the post Join Date: Feb 2004 Posts: 2,826	Re: Three new iPath ETNs for currency plays I don't think the yen is topping out right now. What I do think is that we are starting to think about the dollar vs other currencies so the investment market is responding. __________________ Duck bjorn.

05-11-2007, 04:11 PM	#3
Olav23 Recycles dryer sheets Join Date: Jul 2005 Posts: 423	Re: Three new iPath ETNs for currency plays when you say we, do you mean what those in the industry refer to as "dumb money"?

05-11-2007, 04:24 PM	#4
brewer12345 Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Mar 2003 Posts: 9,226	Re: Three new iPath ETNs for currency plays Hey, its a tool. I don't need a table saw and wouldn't know what to do with one, but its nice that I can always get one if I need it. __________________ “When you realize that you are one of the rare few who observe moral principles in their relationships with others, there is a temptation to sink into amorality, not out of conviction or pleasure but simply to avoid further pain, because there is no greater suffering than being an angel in hell, whereas a devil feels at home wherever he goes.” – Martin Page, How I Became Stupid

05-11-2007, 04:26 PM	#5
Brat Thinks s/he gets paid by the post Join Date: Feb 2004 Posts: 2,826	Re: Three new iPath ETNs for currency plays As Brewer once said, currency has a low yield. But the value of the dollar vs other currencies has been a topic on the stock market channels. There are funds, such as Permanent Portfolio who do hold currency positions. Good/bad, beats me. Brewer talked me out of currency funds. However, countries with currencies improving compared with the dollar might be good equity plays. For example one might buy an Australian ETF instead of the Australian currency ETF. On one of the boards I frequent a poster was in a dither with the fact that a supposedly Australian ETF had New Zealand companies. IMHO one should always review the holdings of any fund. If it doesn't have what you are looking for don't buy it. __________________ Duck bjorn.

05-11-2007, 04:31 PM	#6
brewer12345 Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Mar 2003 Posts: 9,226	Re: Three new iPath ETNs for currency plays Aussie stocks might or might not be a good idea, but if you wwant to get in on a run of the AUD you are probably a little late. In inflationary times and times when the USD is dropping, commodity producers and tangible asset owners are good spots to be. It won't matter what currency they do business in, so you don't have to outguess the currency markets to do well. __________________ “When you realize that you are one of the rare few who observe moral principles in their relationships with others, there is a temptation to sink into amorality, not out of conviction or pleasure but simply to avoid further pain, because there is no greater suffering than being an angel in hell, whereas a devil feels at home wherever he goes.” – Martin Page, How I Became Stupid

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