The world’s largest currency hedge fund, John Taylor’s FX Concepts, predicted that the euro will depreciate to $1 in 2011. John Taylor suggests buying the Australian dollar and selling the euro.
John Taylor’s global currency fund gained 12.53% in 2010, and lost 17.90% in 2009. The fund returned an average 10.46% since March 2001. FX Concept’s global currency fund has $3.2 Billion in assets under management. (Bloomberg)
Insider Monkey, your source for free insider trading data, predicts that the Turkish lira and the Indian rupee will outperform the US dollar and euro in real terms in 2011. We also think the euro won’t depreciate as much as John Taylor suggested. He’s predicting Europe will have troubles with its indebted nations. Meredith Whitney, here, predicted a much worse situation for US municipal bonds. That’s why we are going with emerging market currencies that yield several percentage points higher than major currencies.