Jan 1: 2010

$ in Today's Market

January 1, 2010

Key Notes:

• Since Jan 2010 was a Holiday the Blog will start daily updates from
  January 4th 2010.

  
  

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Here’s some fitting news for the very last day of 2009, particularly for
those of us in the forecastin’ business: The trade war rages on.

The U.S. has “won” the latest trade battle with China,
announcing yesterday that it is imposing a 10-15% tariff on $2.8 billion worth
of Chinese steel pipe. (Heh, that’ll teach ’em!) The U.S. International Trade
Commission voted unanimously in Washington to impose duties, saying that Chinese
government subsidies have made an unfair environment for American steel
producers. One could argue this is almost exactly like American subsidies on
corn production, which have made an unfair farming environment for the rest of
the world. But this is different, of course. Steel starts with an “s,” for one
thing… unlike corn.

Joking aside, the trend can’t be denied. In the past few months, we’ve seen
trade squabbles between the U.S. and China over tires, auto parts, chicken feet,
solar panels and now steel. Despite some lip service during President Obama’s
trip to Beijing back in November, there’s been no sign of these tensions easing,
and sooner or later, someone is going to get their feelings hurt. Could make for
an interesting 2010.

Trading foreign exchange on margin carries a
high level of risk, and may not be suitable for all investors. The high
degree of leverage can work against you as well as for you. Before
deciding to invest in foreign exchange you should carefully consider
your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your
initial investment and therefore you should not invest money that you
cannot afford to lose. You should be aware of all the risks associated
with foreign exchange trading, and seek advice from an independent
financial advisor if you have any doubts.