Buy now! Interesting article in this week's Autoweek regarding Euro vs. Dollar.
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Buy now! Interesting article in this week's Autoweek regarding Euro vs. Dollar.
Since it's high against the Euro in 2001 the dollar has fallen 50%. In the early 90's Porsche rasised prices and lost market share. It Seems that many German auto manufacturers are investing in hedge funds to protect against further decreases in dollar values. Even so, the conclusion is that future price hikes are inevitable.
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'Zactly - not hedge funds. In currency forwards.... very common for companies with...
... a lot of currency risk (from foreign trade), but not at all unique to the current ForEx conditions (as in, companies were still doing this, even when the dollar was worth more than the euro, $/€).
Basically, you pay a percentage of the total value you will need in a foreign currency in order to guarantee that the future value will be what you expect/need it to be.
Basically, you pay a percentage of the total value you will need in a foreign currency in order to guarantee that the future value will be what you expect/need it to be.
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Some of you may know what's going w/ the steel market I'm in it... the prices have gone up as much..
as 60% since past couple of months which is already being reflected in general construction and soon the auto market!!
Good time to buy carbon fiber
Good time to buy carbon fiber
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If you have other people's capital at work, you'd rather have returns that match the risk profile of
... the investment. If you don't hedge your currency exposure, you are basically mismanaging the operations. Or you're a speculator.
But you know this already.
But you know this already.
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Buy now. :) Truth is that car companies want to stay out of the money business.
Hence the hedge.
A friend of mine works for an ISP with lots of South American clients. They've made a fortune with the dollar falling because they are paid in various currencies which are now worth more and more dollars. Of course, if they get used to it, they're screwed.
A friend of mine works for an ISP with lots of South American clients. They've made a fortune with the dollar falling because they are paid in various currencies which are now worth more and more dollars. Of course, if they get used to it, they're screwed.
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