CNNMoney.com prominently featured a story about the eventual rise of U.S.
currency. The article, "Get Ready For a Dollar Rebound," was written by Paul R. La Monica, "CNNMoney.com editor at large."
La Monica supported his argument by presenting the opinions of David Hoffman, managing director with Brandywine Global Investment Management and Bill Knapp, investment strategist with MainStay Investments. Presumably these men are experts, I'm guessing they're at least very well versed in the matter.
La Monica first argued that the rebound of the dollar from records lows against both the Euro and Yen is a mild to moderate indication of the potential growth of the dollar. Hoffman said "I don't think growth will be as weak as the bearish case. The environment is set up for a dollar bounce." La Monica and his experts also think the dollar will rise when The Federal Reserve makes a small cut to federal interest rates, holds steady hold at 2% for a few months, and starts raising rates.
Knapp said the housing market will stabilize during the second half of this year. The European Central Bank is also predicted to lower interest rates soon, Hoffman said "The ECB, before too long, will begin cutting rates. Economic reality will force them to. They tend to not focus on slowing growth until they have to."
» Federal Reserve Slightly Lowers Interest Rate from BusinessKnowMoreMedia
The Federal Reserve lowered it's rate by a quarter of a point today, a much smaller adjustment since the more massive cuts. MSNBC.com featured an AP story on its homepage about the move. This is the seventh consecutive cut and... [Read More]
Tracked on: May 3, 2008 9:53 PM | Permalink to Trackback