Dollar surges as global fears rise

The dollar surged to a two-year high against the pound and a six-month peak against the euro on Friday, as fears about spreading economic gloom triggered a sell-off in commodities.
Against sterling, the US currency notched up its 11th consecutive day of gains – its longest uninterrupted rise in more than 35 years – as markets became increasingly convinced that the US was best-placed to weather the global downturn.

The strong dollar rebound undermined sentiment in the gold market, where prices fell below $800 for the first time this year to $774.90 a troy ounce, almost a quarter lower than early March’s record $1,030.80.
Prices for crude oil, platinum, copper, aluminium, corn and soyabeans have also retreated from records hit this year, prompting speculation that commodity prices have reached a turning point.
“The golden age when commodity prices could only go up is gone,” said Marco Annunziata, chief economist at Unicredit.

Read the story at the Financial Times.

Sovereign Wealth funds buying up foreclosures

According to a recent article in the New York Post, sovereign wealth funds are now looking at foreclosed residential properties. These funds have already gobbled up various iconic commercial real estates, such as the Chrysler Building. How much more of the US can be bought by foreign nations?

"A sovereign fund would have two distinct advantages over other investors - the depressed value of the US dollar makes the homes a bargain, and sovereign funds have deeper pockets.
The sovereign fund of Abu Dhabi, for example, has a reported $875 billion in assets, while Norway has $391 billion, Singapore has $303 billion and Kuwait has $264 billion in their sovereign funds, which are funded by proceeds from oil sales.
The Abu Dhabi Investment Authority is expected to announce next month what type of US distressed assets they will be investing in and real estate is at the top of the list, according to a report in Financial Times last week."

Sad times, in my opinion.

You can view the article here.

PolitiFact

I came across a great website the other day that I thought I would share: http://www.politifact.com/truth-o-meter/.

This site will show you whether statements that both Presidential candidates are making are flip/flops, truths, false and more.


Check it out!