guess bernake has not proven himself as of yet. I don’t claim to know what is going on the with currency market. was just suggesting a general trend based on the derivatives market for currency and federal funds futures. I am not convinced but a contrarian position in this market is not out of question.
Second, investing in other currencies CD is risky. Interest rate parity (theory that amounts to something like arbitrage is impossible in a free market) suggests that the interest rate of a foreign currency is only higher than the interest rate for a domestic currency if the domestic currency is undervalued by the difference between the two rates. The fundamental concept in laymens terms is “there is no fundamental advantage to borrowing or lending in one currency over another.” This is of course theory and clearly you can make money (because unlike theory there are many other factors involved) but in many cases you can also lose money. Theory does often hold in the long term but definitely not in the short term. Guess a class on capital markets is in order if you intend to invest in foreign CDs anyways. good luck
