If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. |
|
|
Thread Tools | Display Modes |
#1
|
|||
|
|||
Euro vs Contrafund Update, or How to Buy a Glider Affordably
Last fall someone asked how to buy an affordable glider from Europe
with the Euro going thru the roof. My response was: "Invest your money sensibly and wait". I suggested a top ranked diversified mutual fund such as Fidelity's Contrafund. Here is an update on that strategy. Euro: $1.2944 (11/15/04) $1.3165 (3/20/05) $1.1914 (7/5/05) -7.957% FCNTX: $54.79 (11/15/04) $57.19 (3/20/05) $59.33 (7/5/05) 8.2862% Clearly the strategy is working (the differential is 16.2%). Mike responded with the concern that the Euro was predicted to rise back up to 1.35 in the next 6-12 months. I wonder what they are predicting today? My guess is the opposite, but who am I to say? The response to those predictions is if they REALLY knew they wouldn't and they would be mortgaging the house to buy currency futures. In reality the rising Fed Funds rate is making the dollar more attractive to foreigners. And the Fed rate is only going to go up in the future. Someone emailed me noting that you would have to pay taxes on your gain in FCNTX. OK, in the U.S. this will be mostly a capital gain if held for a year or more (15%). While we are not yet back to where the Euro hit its all time low, this strategy is within striking distance (13%). See you next quarter. Tom |
Thread Tools | |
Display Modes | |
|
|
Similar Threads | ||||
Thread | Thread Starter | Forum | Replies | Last Post |
Euro vs Contrafund, or how to buy a glider (affordably) | [email protected] | Soaring | 2 | March 27th 05 07:46 AM |
Bad publicity | David Starer | Soaring | 18 | March 8th 04 03:57 PM |
New Military Aviation Books from Germany | ArtKramr | Military Aviation | 0 | November 23rd 03 11:43 PM |
New Military Aviation Books from Germany | ArtKramr | Military Aviation | 0 | October 29th 03 02:33 AM |
New WWII books from Germany | ArtKramr | Military Aviation | 0 | October 13th 03 12:54 AM |