Tuesday, September 6, 2011

Market woes, Swiss cheese

Another bad day in stockmarket land, despite a a late run. The financial sector is barely holding on and EU woes --if they increase--will likely continue to have ripple effects.

But what's up with the Swiss franc? Because investors love the franc when financial stocks are less-than secure (i.e. risky), the franc had been rising against the dollar and the euro for  a while, now. And because of this, Swiss exports have been getting hammered. Apparently, the Swiss have had enough. Today, the Swiss National Bank put a cap on the value of the franc against the euro. This means that if the value rises in the markets, the Swiss will dilute their currency or buy up euros to artificially lower that value (the latter, I would think).

Now if I were a betting man--and I am, since I own stocks--I'd bet that this move is based on some insider info with regard to the looming issues in Europe (mostly Germany really).

And I don't think this is very good sign...

Cheers, all.

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