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Crystal ball of the day

Headline from today’s Edmonton Journal:

30-year high, but surging loonie isn’t done yet

Apparently the Journal rim is smarter than the currency markets! Just think of it: some brilliant, anonymous sub-editor possesses the secure foreknowledge that the “surging loonie isn’t done yet,” but rather than mortgaging every asset he owns to buy Canadian dollars and bury them in the backyard for a few weeks, he remains stoically at his post, taking quiet satisfaction in his role as a toiler of the free press. We salute you, magnificent Unknown Soldier of the business section!


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Comments (3)


I love blog posts like this. Down here in LA we have this (nationally-distributed) public radio show called Marketplace. It has many sins, and an important one is that it's on during my commute. Every day they speak with absolute certainty --in a second-grader's vocabulary-- about exactly what made the market wiggle this way or that. They play Stormy Weather when the Dow's down, We're in the Money when it's up. Their wretchedness mocks Wall Street, the thoughtful investor, and Marconi.


If there was certainty to the loonie going to 'par', (or oil to $100 or $20, or gold to $zillion or $35) it would be there already, minus the time value of money. The very fact that for every person buying a $0.97 loonie (barrel, ounce) thinking it will go up, there is necessarily another person selling that same $0.97 loonie (barrel, ounce) thinking it will go down puts the lie to all the prognosticators-for-hire.

That's my whole point. The author of the story might conceivably understand (though there are no quotes to explain who might be short Canadian dollars right now, or why), but the headline writer--i.e., one of those editors the mainstream media is forever celebrating as adding value to news pieces--definitely doesn't.


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