today listening to the Marketplace morning report, I heard that the Euro is effectively in parity with the US Dollar, the lowest it's been since fall 2002. I'm wondering if now is the time to purchase new European photography gear... Not for me I'm quite poor these days; it's just a question for the electrons out there.
Phil Forrest
Phil,
It is true parity in the exchange rate between the U.S. dollar and Euro.
Understanding that the dollar is strong is helpful. One reason for this strength is because of the higher interest rates from the FED; another is the flight to safety because of the war in the Ukraine; another reason is that commodity prices have risen and commodities are priced in dollars; then if we understand or know what the banksters, hedge funds, and smart money is doing is hoarding cash so that in the future they can buy assets mucho cheap.
I believe your insight is true, but it is still early yet. Even if a recession already started, as recorded in a current slowdown, a recession won’t be declared until sometime next year. Also I believe the U.S. is best positioned economically, Europe has the drag on its economy compounded by lack of energy and energy independence, and China looks like it is heading even into a recession because of lock downs and lost GDP.
Fact is that it looks highly probable that we will have a world wide recession, but it is pretty clear the U.S. has and will have the strongest position. Europe is not looking so good, and China is not looking so good either.
I say, “Keep your ammo dry, and time is your friend.”
In today’s episode of “This Old Baby-Victorian” I had the oil burner serviced. I knew a pressure relief valve was bad and I would have to empty a 4 gallon tray twice a day until the plumber who was doing my bath and kitchen shut off a valve. This plumber told me that when the pressure relief valve goes south usually the fill valve is bad also. So they got replaced. The oil burner service guy taught me a lot; and I got a lot of info on how to bleed the radiators (just like bleeding brakes on a car), lifespan of the “coil” for the hot water, and how to best maintain and be prepared for upkeep.
Again my journalism skills were of use in asking the right questions, gathering facts and connecting the dots.
Anyways the time for bargain hunting is in the future and is perhaps begins next year. “Keep your ammo dry.”
Cal
P.S. Keep in mind the question if we have a world wide recession on how that might play out.