These are words of famous investor Jim Rogers. They pertain to situation in UK. When asked about the reasons behind economic decline in Great Britain he said: “It’s simple, the UK has nothing to sell.” This is why we are witnessing this fantastic collapse of Pound. Two mainstays of GBP support have been North Sea oil and role of London as major financial center. Both of them are in a decline as money flows east and the oil, well, is not flowing as it used to. He sees farther decline against Dollar and Euro, with no end on the horizon yet.
Generally speaking I respect his views, although they tend to be very extreme. One example: he has been a perpetual bull for commodities, especially oil. Even when oil was pushing $150 he was still arguing for higher prices. While extremely long term he might be right, I wonder if he still sits on it? At any rate, if anybody was looking for reasons why GBP is in a shape it is, there you have it. “UK has nothing to sell”.
While Mr. Rogers worries about North Sea oil, Yen just keeps on charging ever higher. I took a test trade in NZD-JPY yesterday.
I was waiting for bullish candle on hourly chart, When it formed I bought it (top of the bearish candle), 46.77. Objective was 100 pips. price came just short and I got out 47.43. Well, yen made another run for it just few hours ago. Big push, 200 pips here, and 400 pips in GBP-JPY, hitting 120.00. I’m placing trailing buy orders on some Yen pairs. For NZD-JPY buy level is 47.80 for now. If this was to happen, target would be 49.80.
Pound crosses start to look attractive to me so I’m also tracking them with Pound buy orders, starting with EUR-GBP.
Potential sell at 0.9322, with 80 pips objective. Now, GBP-JPY I have a special plan for. Depending on how today ends, what the candles look like, I might place a buy order just above daily high. This would be a long term trade, targeting 1500 or so pips, but with possible large downside. Would have to give it 500-600 pips breathing room. Decision will be made tonight.
Mike K.
Nice writing style. Looking forward to reading more from you.
Chris Moran
[...] Nothing to sell. | fxmadness.com [...]
Thank you.
Jim Rogers has a great track record. If he says that Pound is heading even lower, maybe there is something to it. Could be wise to listen to him.
Mike, couple of days ago you posted a trade in CAD-CHF. Are you still in it?
Maxim, yes, Rogers has made a lot of monet over the years. But his views are so broad and outlook so long that ( he never defines it) that anything can happen between now and the vague “then”.
Heather, it will be covered in the next post.
Are you really going to buy GBP-JPY long term here? Everybody is talking about it heading lower. Hope you know what you are doing.
I don’t “know”. Every single trade is a guess, more or less educated. No certainties, just higher or lower probabilities.
I think his comment is ridiculous and without merit. How can you say that a country has “Nothing to sell”? This means that UK has nothing to offer which not only untrue, but also offensive. Stupid remark. I would have expected of Jim Rogers to be a little more tactful and factual.
UK citizens will probably want to join into Euro soon. Any thoughts?
[...] and the “nay” sayers, like Jim Rogers, whole in January boldly declared that UK had Nothing to sell. He has been a little of target so far. Others are more optimistic about UK’s future. Rating [...]