Monday March 10, 2008

Goldman Sachs bearish on Canadian Dollar - buy CAD!!!

seekingalpha.com :

The Canadian dollar is likely to be in for some weakness amid falling interest rates and slower economic growth, but keep an eye on rising commodity prices before selling the local currency short in the near-term, strategists say. The Canadian dollar will face some downwards pressure as evidence mounts that Canada cannot decouple from the U.S. economic slowdown, Goldman Sachs said in a strategic report. The report said : As the U.S. slowdown turned more severe in the second half of 2007, and into a recession in the first half of 2008, the support from commodities became insufficient to counter increasingly large negative direct macro spillovers from the U.S.

- Goldman Sachs? That's the same bunch of guys who said to sell gold back on 29 Nov 2007 when the gold price was at $802. As of the close this past Friday, gold is now $972, up 21% since their "sell" recommendation. Conclusion? It might actually be profitable to do the exact opposite of what they say. Buy CAD!!!

(2008-03-10 00:23:14 SGT) [Biz] Permalink

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