This chart shows a high correlation between the Australian dollar and the Norwegian krone, where the US dollar is concerned.Since both are commodity currencies the chart should not be a total surprise.
One thing I wonder about is that with the increased awareness of commodity stocks by US investors but the relative lack of attention Norway gets, compared to Australia, if there might not be some sort of catchup in Norway to Oz. What I mean is that if awareness of Norway as an investment destination increases it could be a possible catalyst for the OBX, Norway's benchmark index.
I would not expect much from this for now. It is possible I am the only one that writes Norway in this manner. I looked on Technorati and didn't find much. If you know of any other blogs that mention Norway I'd love to hear about them.
3 comments:
Hey, Roger. It seems like no day goes by without your mentioning Australia. Can you recommend a few Aussie, and NZ for that matter, index funds I can look into?
There is not a lot in the way of funds that I am aware of but there are a couple.
iShares Australia (EWA) is a personal holding. There is an actively managed OEF, CNZLX, which has 5 stars from Morningstar (no position). According to ETFconnect there are six CEFs with Australian exposure;APF 9%,ASA 9%, BGR less than 5%, IAF 100%, IGD 7% and MFD 5% (no position)
There are also products available locally in Oz and NZ that you may be able to access that are truer index funds. I know these exist but am not sure about how to access them.
Most clients capture this part of the world with ADRs. I do have a couple of clients (literally just a couple) that also own EWA.
Commodity currencies, complete with a couple of fifty-cent academic words like "cointegration".
Union Bank of Norway was a great trade about five years ago.
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