Thoughts on USA Funds – a personal viewpoint from Douglas Chadwick.
I have been watching the USA funds over the last three weeks in the Saltydog numbers. They would seem to be getting better.
Recently I have read that there is an improvement in the American unemployment numbers. There is also an increase in the numbers of new cars being bought with a lot of these being produced in the USA. Also the price of Pork Bellies and Orange juice (I kid you not) are on the rise.
These things would lead you to believe that there is a turn up on the way in the American economy.
Now what if the European financial news continues to be poor. The Euro will remain unloved so just maybe the dollar will experience an uplift as the ‘currency of last resort’. At the same time gold bullion might also come back into favour but that’s an aside. Consider if the American economy was to improve slightly and at the same time the dollar was also to strengthen, then that would be a double whammy for USA funds.
Well in Autumn 2010 there was a nice run on the Emerging market funds, then in the Spring 2011 it was the turn of Gold funds to shine and for the last few months of 2011 the Gilt funds have helped us along. So perhaps, maybe, who knows, now might be the turn of USA funds.
So for my own investments I am going to put my toe in the water with perhaps 5% between the top two Saltydog North American funds. The rest will stay in Safe Haven with some in Gilts, but I do have gilts on my danger watch list. I also have my fingers and toes crossed!