The dollar and yen exchange traded funds (ETFs) are gearing up to cap off a banner month, with their strongest one-month gain against the euro ever.
Global recession fears are prompting investors to sell off their higher-yielding currencies, benefiting the dollar and yen, report Lukanyo Mnyanda and Stanley White.
A strong yen, however, isn’t always a good thing for everyone. Since Japan is such a big exporter of goods, a robust yen hurts profits, which will then hurt the country’s stock market. That, in turn, could have a ripple effect on exchanges in the United States and Europe.
Read the disclosure, as Tom Lydon is a board member of Rydex Funds.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.