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Will the euro Collapse?
Pinnacle Digest writes: Fear and pessimism towards the euro is at all-time highs right now. It is trading near two year lows. And as Adam Hamilton of Zealllc.com explains, the short-euro trade has become the most overcrowded trade on the planet. Just like our team at Pinnacle, Adam welcomes the opportunity to be a contrarian and breaks down exactly why he believes a euro surge is coming.
It is explained in Adam’s article the lack of follow-through the Greeks have when it comes to sticking to a game plan. And despite this lack of follow-through, with or without Greece, the euro is going to be fine - and could likely strengthen from a Greece exit. With that stated, traders alike seem to believe that a Greece exit from the euro would be the collapse of the world’s second reserve currency.
The euro, as Hamilton explains, is the world’s second reserve currency and like it or not, the USD MUST have a competitor currency.
In Hamilton’s article he explains that ever since its inception, the euro has battled with traders and speculators claiming it was doomed and would eventually be worthless. Yet, every time the euro has battled back from violent downtrends. Hamilton states “between mid-2001 and mid-2008 the euro surged 90.5% higher in a mighty secular bull. Even this week near new interim lows, the euro was still up 50.5% since its bull began!”
An interesting fact taken from this article is that the euro now has more physical money in circulation than the US dollar. It is used by 330 million people daily and another 175 million people use currencies pegged to it.
In short, the euro is not going anywhere - whether Greece runs away with stolen money or not.
Click here to read Adam Hamilton’s provocative article on the subject.