warren averages down

Quote from swoop[TR]:

You are definitely a luminary, no doubt about it. Ever heard of the fisher effect? You must earn the same amount of interest abroad on a risk free asset as you earn at home. Otherwise, you would get what we call arbitrage. Hence, when Buffet buys Euros, he doesn't see an arbitrage opportunity, he just thinks that his principal is going to grow vs dollars. Has nothing to do with interests. If real interest rates go up in Euroland, so does the currency. Why is that do you think?
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Because people will want to buy EUR due to getting higher interest return on their money? :)

But, EU just inducted 10 more countries. Sure on the one hand this may be seen as positive (biggest economy in the world) but on the other they have that many more problems with "junk currencies" and garbage economies.

So, the price is guaranteed to do nothing else but have larger swings.

Trade Off <-- "definitely a luminary."
 
Quote from pspr:

He might be looking to entice some new sellers so he can cover his short position at a better price.
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Bingo, Buffet preaches fear and scare tactics to further his gain as he knows many will hit his bait.
 
Quote from Nordic:

Bingo, Buffet preaches fear and scare tactics to further his gain as he knows many will hit his bait.
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I think you got something there. So he manipulates the market.
 
Nah,

I really believes what he says about the dollar. But that doesn't mean that his positions reflect exactly what he is saying either.

nitro
 
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