Home
Mike Swanson's picture

China Says US Dollar Will Remain Reserve Currency - Mike Swanson (07/07/09)

Submitted by Mike Swanson on Tue, 2009-07-07 07:02.

I monitor the global financial news and there have been multiple stories the past few weeks about the dollar losing its status as the global reserve currency. In particular there have been many articles about the emerging BRIC Nations - Brazil, Russia, India, and China - and talk about how they are working more and more together and may create a new global unit - which would be a basket of currencies or the SDR unit from the International Monetary Fund - to replace the dollar the reserve currency of the world.

Well, yesterday China's Vice Foreign Minister told reporters, "The US is still the most important and major reserve currency of the day, and we believe that that situation will continue for many years to come."

I think this should put to rest any thoughts that the dollar is going to be replaced by anything else anytime soon. It may happen in the future, but it is probably years and years from now. Recall that the dollar replaced the pound as the most important currency in the last century - but this process took from the time of World War I to the end of World War II. During that time the US was the biggest lender nation on the globe- just as China is today - but it took decades for the dollar to become the global currency despite the fact that it was the strongest trading currency during most of that time.

For more on investment ideas and stock picks sign up to my free weekly stock trading newsletter.

»


Sign Up Below to My Free Weekly Newsletter

Hello. My name is Mike Swanson. I’m the best-selling author of the book Strategic Stock Trading. In a former life I used to run a hedge fund from 2003 to 2006 that generated a return of over 78% during that time frame. In fact it was ranked in the top 35 out of 5,000 hedge funds in 2005.

After I retired from the hedge fund world I setup this website and blog. If you sign up for my free weekly email list below I’ll send you an update on average about once a week on my views of the current stock market trends and share with you actionable investment ideas.

Now I cannot promise you that every stock I find will go up in value. I can’t promise you endless 100% returns as others claim they do and as all the disclaimers say past performance does not necessarily predict future performance and you can lose all of your money in the stock market.

This is reality.

What I can promise you is my dedication to doing the best I can for you.

You see the key to making money over the long-run in the stock market is to manage your risk. Once you sign up to my newsletter I’ll send you a series of educational videos and writings showing you how I use stop-loss orders to cut any potential losses and how I use my two fold formula system that combines fundamental and technical analysis to pick stocks. My goal is to risk one dollar to try to make at least three dollars in my trades by looking for stocks that are priced cheaply on a valuation basis, have high earnings growth, and have excellent chart patterns.

So join my list below and let me help guide you on your journey in the stock market.