“Where is all the knowledge we lost with information?”
--T. S. Eliot
Commentary & Analysis
Dollar bears multiplying; be careful!
As I scan the papers, and the web, I have noticed bank analysts and newsletter writers are becoming increasingly bearish on the US dollar. Effectively, the dollar downtrend will continue in 2018 is the view. This seems the consensus thinking to justify a dollar bearish view:
· All good news is already priced in the US dollar, for instance:
- Three rate hikes by the Fed in 2018
- Tax cut legislation will have only a minimal flow-through beneficial on the US economy in 2018.
- Given the synchronized global recovery, other central banks will start to play catch-up on interest rates and that will be bad for the dollar.
It makes sense. But lots of things make sense in the investing world until Mr. Market decides to prove rationales flawed...READ MORE