http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-safe Are German Bonds Safe? In response to chaotic and falling stock markets many investors are searching for safe havens for their money. In an article by reuters about global stocks there is an interesting note. Investors are buying national debt, Swiss franc, United States, Japanese and German bonds. nervous investors put more money into low-risk yen, swiss franc, gold, u.s. and german government debt as they await more clues whether the federal reserve and other central banks would provide support to stabilize markets that have been roiled partly due to worries about weakening economic growth in china. Is this a good strategy? Are Japanese, Swiss, U. S. or German bonds safe? When purchasing national debt one is betting on interest rates and on the relative value of a given currency versus other currencies. If you are going to convert U.S. dollars to Euros in order to buy German debt you want to know the rate of return you will get on your bonds and how well or poorly the Euro will do versus the U.S. dollar. Euro versus Dollar According to exchangerates.org.uk there is a downside risk to the Euro. a strong downside euro trend continues today, after ecb president draghi stated that monetary policy “may need to be reviewed” in the next meeting (march 2016). exchange rate analysts at lloyds commented on the euro vs dollar exchange rate outlook in the near-term: “eurusd declined toward the bottom of its range, having printed a low of 1.0778, although it has now retraced some of this move.”

1. By www.ProfitableTradingTips.com

2. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
In response to chaotic and falling
stock markets many investors are
searching for safe havens for their
money.

3. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
In an article by reuters about global
stocks there is an interesting note.

4. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
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5. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
Investors are buying national debt,
Swiss franc, United States, Japanese
and German bonds.

6. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
nervous investors put more money
into low-risk yen, swiss franc, gold,
u.s. and german government debt

7. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
As they await more clues whether the
federal reserve and other central
banks would provide support to
stabilize markets that have been
roiled partly due to worries about
weakening economic growth in china.

8. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
Is this a good strategy? Are
Japanese, Swiss, U. S. or German
bonds safe?

9. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
When purchasing national debt one is
betting on interest rates and on the
relative value of a given currency
versus other currencies.

10. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
If you are going to convert U.S.
dollars to Euros in order to buy
German debt you want to know the
rate of return you will get on your
bonds and how well or poorly the
Euro will do versus the U.S. dollar.

11. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
Euro versus Dollar

12. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
According
to exchangerates.org.uk there is
a downside risk to the Euro.

13. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
a strong downside euro trend
continues today, after ecb president
draghi stated that monetary policy
“may need to be reviewed” in the next
meeting (march 2016).

14. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
exchange rate analysts at lloyds
commented on the euro vs dollar
exchange rate outlook in the near-
term:

15. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
“eurusd declined toward the bottom of
its range, having printed a low of
1.0778, although it has now retraced
some of this move.”

16. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
Two years ago one dollar was worth
0.74 Euro and today one dollar buys
0.92 Euro.

17. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
That is a twenty percent fall in the
value of the Euro versus the
greenback. Why did this happen.

18. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
Interest Rates, Delayed
Stimulus Measures and
German Bonds

19. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
The currency rate story of last year
was when the U. S. Federal Reserve
was going to raise interest rates and
how far.

20. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
It turned out that they raised rates
very little and were very clear that any
further rate increases would come
only when necessary.

21. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
Meanwhile the European Union came
to realize that using austerity
measures to deal with the 2008
market collapse and Great Recession
was a disaster.

22. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
They realized that the better choice
was the one that the USA took which
was to institute strong economic
stimulus measures.

23. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
As the EU prints money to stimulate
the economy the value of the Euro
falls.

24. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
Are German bonds safe? They will
not be if the value of your money,
versus dollars, falls as the Euro
devaluates.

25. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
Negative Interest Rates

26. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
When we worried about Greece,
Spain, Portugal, Ireland and even
Italy going bankrupt the safest place
to put your Euros was in German
bonds.

27. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
Unfortunately German debt briefly
had a negative interest rate.

28. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
In other words you paid money in
order to hold German bonds.

29. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
The rationale was that it was safer to
pay the Germans to hold your money
than to risk losing all of it by
purchasing Greek bonds.

30. http://profitabletradingtips.com/profitable-trading-tips/are-german-bonds-
safe
Are German bonds safe? They are if
you are fleeing Greek debt but not if
you are cashing out of US dollars at a
time when the Fed will likely raise
rates again this year.