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  • SpinalTap58 SpinalTap58 Feb 9, 2010 2:26 PM Flag

    When The Value of the Dollar Increases

    "Best of a Bad Lot": Dollar Will Soon Be Worth As Much the Euro, Says Gary Shilling
    Posted Feb 09, 2010 12:57pm EST by Peter Gorenstein in Investing, Recession
    Related: udn, uup, ^ftse, vgk, euo, fxe
    Late last year, very few investors other than our guest Gary Shilling of A. Gary Shilling & Co. were predicting big things for the U.S. dollar.

    Guess what?

    As is often the case when sentiment tilts too far in one direction, the dollar is enjoying a nice rally to end 2009 and start 2010, thanks in part to Euro's problem with Greek debt.

    Reports of a rescue for Greece is giving the Euro a bounce today versus the dollar. However, Shilling is not about to buy Euros; believing in tough times, investors will continue to flee to the greenback, simply because it's "the best of a bad lot."

    With that in mind, Shilling is short the euro and long the dollar. As he tells Henry in this clip, dollar - euro parity is in the offing. "It will go down to one to one," he declares.
    8 votes|Recommend this

 
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