Ms. Park was a guest with Michael Kane on Business News Network (BNN) this morning, Wednesday January 27 at 8:35am. The clip is available on BNN web site here.
Here is a link to the McKinsey Institute report she mentioned in her appearance.
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Hi, Danielle. As you were speaking on BNN, there was a graphic at the bottom of the screen that said “Danielle Park likes the U. S. dollar and long-term bonds”. I didn't hear you talk about long-term bonds during the discussion, and I haven't heard you talk about bonds more than 7 years in duration before. How do you feel about long-term bonds in view of probable US dollar appreciation?
Also, do you have any preferred method for “buying the dollar” for Americans? My only knowledge on this is the ETF UUP.
Thank you for your continued appearances on BNN. They're always interesting and informative.
Yes we did not get enough time to cover bonds. We think that the economic data is likely to take a new turn for the worse in the next few quarters, and if this is the case then expectations for near term rate hikes are likely unfounded. As a result, we think that the sell off in recent weeks in longer bonds, may provide an opportunity to extend some fixed income capital further out on the curve in government bonds for a while–it wouold be for a trade not a park. As we will have to watch very carefully for signs that rates are rising, which eventually I assume they will perhaps a year or so out.
As for US dollar for Americans I would look at repatriating foreign currency capital you may hold in the C$, Aussie or Euro assets and place it in US dollar Tbills, money market, or similar short term ETFS, perhaps some in the longer bond ETF's (only if you are prepared to watch rates very closely for a need to exit them). But the idea would be to take capital away from equity and foreign currency risk and park it in the U dollar while the next leg of the risk asset correction plays out.
I like your short segments on BNN. As apposed to some guests on market call who are invited back again and again and say the same thing about the same stocks over and over. And I love when some come on and bravely say they ignore the charts and technical analysis. You just know they're closet technical analysts.