A currency reflects the strengths and the weaknesses of a country relative to other countries. A strong country has a strong currency. A weak country has a weak currency.
In the 1970s the dollar collapsed as we were following inflationary policies. The dollar peaked in 2004 and declined through 2007. Its prolonged decline anticipated the mess we are in.
The dollar is an important indicator of our future. A weak dollar does not spell good news for us. The dollar peaked in March and has been declining since then. Is it trying to tell us the economy will get in trouble again?
To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/ where you can review The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs.
I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes.
George Dagnino, PhD
Editor, since 1977
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