Wednesday, February 29, 2012
U.S. Dollar set for takeoff
The U.S. Dollar is set to move higher. Depending upon whether or not THE top of the bear market rally that started in March 2009 has been seen, this move will either be moderate or explosive to the upside. If we are indeed topping now, which is a very real possibility, then the U.S. Dollar index should take out its 2009 high of 89.62 in short order, and the SPX its 2009 low of 667. Regardless of whether or not this is THE top of the bear market rally or whether we have one more move up coming after a pullback, the top is getting close and when it is put in, these parameters for both the U.S. Dollar and the SPX will apply.
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Absolutely agree with this. I believe we are entering a new bull market for the dollar. In fact, one interesting piece I read was that the US importing less foreign energy will acvtually lead to a strengthening of the dollar over time as well. When you add this in, prospects for the dollar are better than most believe.
ReplyDeleteHello investment in farmland,
ReplyDeleteThanks for the comment! Indeed, I believe that the pessimism on the U.S.Dollar is extreme right now and it will take a multi-year Bull Market to work off that sentiment. By the the USD Bull Market ends, everyone will love it and be giving their clients all the reasons why they should own the USD. Just the market cycle, nothing new.
Cheers!