Thursday, June 10, 2010

Jim Rogers: It May Be Time to Buy the Euro

Everybody is so bearish about the euro that it looks like now is a good time to buy the single European currency,  investor Jim Rogers told CNBC.

"I'm as confused as anybody else… I'm basically short stocks and long commodities and trying to figure out whether to add to the euro yet," Rogers told CNBC.

"Everybody is terribly negative on the euro right now, it's unbelievable how many bears there are and usually that indicates a rally," he said.

I agree with Rogers. the EU crisis is just that a crisis about the EU, but not the euro. The PIIGS don't print euros and it appears that Germany and France are very anxious about printing euros to bail the PIIGS out.

The euro fall was long anticipated by me as a result of the tight Federal Reserve monetary policy. The collapse got carried away with the PIIGS crisis, but a strong reaction against this downward euro trend is due at anytime.

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