Gelsons Dad
Well-Known Member
kronkonite said:
Part of the current problem in the UK is the close ties of the FTSE and the FED and in part the effect of dollar rates on the pound. Sterling follows the USD and has been dragged down with it so money moves into other exchanges. The great Indian and Chinese booms have both taken a correction but are now growing again so the money propping up the UK markets is looking for new homes overseas.
Here in Switzerland the banks hit by the credit crunch (realization that a large amount of high risk debt had to be written off) all had enough capital to ride it out and the money moved from high to low risk investment internally. It's a more cautious market by nature here.
The CHF is more closely tied to the EURO than the dollar as thats where most of the trade is so as Sterling has collapsed over the last year the franc has made ground.
There is no recession here.
But it will flow to all markets eventually until we find a way of getting china to spend some of her reserves. They hold more dollar reserves than anyone other than the states! They are now the 4th biggest economy and growing very rapidly again.
If you want to make money in the next few years find something to sell to China otherwise hold tight.