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Two Ways to Play: Soros Doubts Euro's Future


Strengthen your portfolio in good times and bad.

The Euro's future is still in doubt

George Soros called the euro "patently flawed" and said that the currency of the 27-member region faces a bigger test than just Greece.

In a story appearing in the Financial Times over the weekend, the billionaire hedge fund manager who's famous for his billion-dollar bet against the British pound, said the 2008 crash revealed the flaw in the euro's construction when EU members had to independently rescue their banking systems. Soros said the situation was brought to a climax by Greece and worsened by the credit default swaps market, which favors bearish investors.

The euro may survive the current crisis but the future of the currency is still in doubt. What's needed is more monitoring and institutional arrangements for assistance. The only question is, Soros says, "whether the political will for these steps can be generated."

From the Bull Pen: The takeaway from this is that these fiat currencies around the world are a terrible mess, and investors are currently searching for stores of value (i.e. precious metals). Consider the silver ETF (SLV); a sell stop can be set near $15.

From the Bear Cave: A common myth is that the US dollar is the best of all currencies. Those investors ignore the strength of the Australian dollar. Consider the ETF (FXA); a short-term sell stop can be set below $89, the 20-day moving average.

For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter.

A Quick Check Around the World

Asian trading closed with the Nikkei 2.74%, India 0.28%, Hang Seng 2.43%, Shanghai -0.49%, and Taiwan 1.59%.

Aross the pond, we see the FTSE 0.09%, CAC -0.16%, DAX -0.19%

As of 8:10 AM EST, S&P Futures are trading +5.55 to 1111.75. Nasdaq futures are +11.0 to 1830.25.

A Look at Commodities

Over in commodities, crude oil is +0.47 to 80.53 while gold is +02.00 to 1124.20 this morning. Silver is +0.072 to 16.480 and copper -0.0135 to 3.3435.

The dollar Index is -0.1600 to 80.5600.

No economic events on the radar today but Fed chairman is scheduled to speak at 11:00 AM.

Click here for the full trading radar. Good luck today!
No positions in stocks mentioned.

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