Sep

11

Size Matters, from Craig Mee

September 11, 2011 |

Hypothesis: Let's keep it simple.

Looking at the total population sizes of countries, and the ease at which you can organize and get out the broom when the recession hits. Trade: buy the currencies of countries with population less than 25 million, relative to their big brothers when times get tough… I'll leave it up to those with the necessary skills to optimize this a wee bit further which it undoubtedly needs (The Japanese yen was the only unwanted one at the party).

Zimmetro — Latin America is the best performing currency; the Paraguayan Guarani is up 15.90% on the USD this year.

We then have those strong Oceania currencies, the Australian Dollar, New Zealand Dollar and the Papua New Guinea Kina moving north 5.00%, 9.40% and 14.30% respectively matching the USD this year. The Singaporean Dollar and Japanese Yen both appreciated around 6.40-6.60%, against the USD this year. The South Korean Won gained 4.40%.

Europe's best performing currency, the Swiss Franc, rose 14.40% against the USD this year. Norway’s Krone also performed pretty well at 8.40% vs the USD this year. Africa’s best performing currency, the Mozambique New Metical is up 14.10% on the USD, while Mauritius Rupee 9.90%.

But the best performing currency who beats them all, is in Asia.

…..

Myanmar. (Note the overall winner does have a pop of over 50mill), was a country undergoing some major political and structural reform, and goes to show , that this as a investment philosophy i.e structural shift is hard to beat.


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