Few people follow currencies because they are difficult to understand. I believe a currency measures the relative competitive advantage between two countries.
The dollar has been declining since November. Peaked again in March and has declined since then. In the past few days it broke decisively below an important support level.
Why are people selling dollars? Do they see more opportunities in other countries? What are the implications for our markets and economy?
Only time will tell, of course. But we must keep in mind that the trend of the dollar is an important leading indicator.
The dollar peaked in 2004 and you know what happened to our markets.
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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