I receive a good number of emails and weclome them all! Always feel free to send me a question or comment to Kimblechartingsolutions@gmail.com
For some odd reason a good deal of the emails happen to express concerns about the future of the U.S Dollar. Investors also ask about its impacts and where/how they can take advantage of a further U.S. Dollar decline, should it happen.
Recently I shared that the Australian $(FXA) had broken from a multi-month sideways channel and that investors wanting to protect /own a strong currency, should pick up FXA, due to the breakout. (see post here) Several emails have ask why not buy the Euro? See the currency comparison below.
CLICK ON CHART TO ENLARGE
As the above chart reflects, the Australian $ is performing prettty well YTD. I suggested to own FXA due to a multi-month breakout and it has a current yield of over 3%. The Euro ETF (FXE) isn’t doing poorly, nothing wrong with owning it shoudl the U.S $ decline…its just not as strong as FXA and it doesn’t have much of a yield payout.
Game Plan…We have a current stop on FXA, at its upside breakout. We are up a couple of percent since 3/25, will see if this continues.