Quote:
Originally Posted by Zulu29
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Speculators speculate on the true value of something. Speculators estimate that current values are wrong and they look to close arbs.
It would be much more accurate to say that speculators are fixing inefficiencies or in accurate valuations, than to say they artificially alter a price.
If you do your learning on globeandmail.com you you don't get to learn much about business or economics. You just get to learn that oil and alberta is/are evil.
EDIT, if the CAD was in fact over valued, speculators would sell the crap out of the CAD, subsequently reducing it's value.