24 February, 2012
Did You Notice, What a Change, No Scary Greece Headlines !
Yes, that’s right, for the first time in perhaps two years you can open your news browser or newspaper, and while it is there somewhere perhaps as an average or small story, as you scan the headlines and its obvious, Greece just isn’t there.
Yes, that’s right, for the first time in perhaps two years you can open your news browser or newspaper, and while it is there somewhere perhaps as an average or small story, as you scan the headlines and its obvious, Greece just isn’t there.
I proclaim the Euro bears totally defeated.
The Black Swans haven’t flown south for winter, they have been burnt to a cinder by the heat of one of the world’s greatest ever bull markets, from robust “new first world” of Asia and Latin America economic growth, to things steadily improving in the “old first world” of Europe and the US, clearly definable bull trends as forecast in global equity markets, and now it is the Euro’s turn!
The Bullish White Crane View of the World continues to pay dividends.
We have said it before, but just quickly, the Euro is a still a prosperous economic region for the private sector with corporate profits up 10% last year, and they will be again this year, the Euro-zone probably has the world’s second best central bank to the Chinese, and it is the only viable alternative reserve currency to the still in decline US dollar, and to top that off the Euro represents the world’s largest economy, significantly larger than that of the US.
Remember the “strong dollar policy” of the US,
is in fact the “orderly decline of the dollar policy” and has been such for many years now.
Expect the Euro to continue to rally sharply from current levels, as the false and misguided notions of the disintegration of Europe are priced out, and the more probable reality of positive economic growth in the year ahead, on top of all the afore mentioned factors, only begin to be priced in.
My Euro target for this year remains US$1.5200.
The Australian dollar continues to languish just a little under the weight of the immediate political uncertainty, but the medium term outlook remains extremely strong, and our target for this year remains US$1.1700. The long term targets remain, as they have for several years now, US$1.2000 US$1.2800.
In the short term the Australian dollar has most likely already seen the low in what has been a modest correction phase. As with the Euro the dominant risk is at all times very much to the upside.
Clifford Bennett
Chief Economist
White Crane Group
The Black Swans haven’t flown south for winter, they have been burnt to a cinder by the heat of one of the world’s greatest ever bull markets, from robust “new first world” of Asia and Latin America economic growth, to things steadily improving in the “old first world” of Europe and the US, clearly definable bull trends as forecast in global equity markets, and now it is the Euro’s turn!
The Bullish White Crane View of the World continues to pay dividends.
We have said it before, but just quickly, the Euro is a still a prosperous economic region for the private sector with corporate profits up 10% last year, and they will be again this year, the Euro-zone probably has the world’s second best central bank to the Chinese, and it is the only viable alternative reserve currency to the still in decline US dollar, and to top that off the Euro represents the world’s largest economy, significantly larger than that of the US.
Remember the “strong dollar policy” of the US,
is in fact the “orderly decline of the dollar policy” and has been such for many years now.
Expect the Euro to continue to rally sharply from current levels, as the false and misguided notions of the disintegration of Europe are priced out, and the more probable reality of positive economic growth in the year ahead, on top of all the afore mentioned factors, only begin to be priced in.
My Euro target for this year remains US$1.5200.
The Australian dollar continues to languish just a little under the weight of the immediate political uncertainty, but the medium term outlook remains extremely strong, and our target for this year remains US$1.1700. The long term targets remain, as they have for several years now, US$1.2000 US$1.2800.
In the short term the Australian dollar has most likely already seen the low in what has been a modest correction phase. As with the Euro the dominant risk is at all times very much to the upside.
Clifford Bennett
Chief Economist
White Crane Group
Apology we have had technical problems with loading the "going extremely well" Directions section today.
This will follow in a separate e-mail.
Clifford Bennett
Chief Economist
White Crane Group
Sydney, Australia.
+61 (0) 423 950 427
clifford@whitecranegroup.com.au
www.whitecranegroup.com.au
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