Note Green Elder Impulse Weekly Bars in the UUP (US Dollar ETF) as well as the FXY (Japense Yen ETF) Consistent with my core Deflationary macroeconomic thesis & worldview I expect the US Dollar to continue it's longstanding Bullish Supertrend throughout 2016.
I also believe that with the Japanese Yen inverse correlation to equities coupled with a bear market in stocks. It is likely that the Japense Yen rises in tandem with the US Dollar throughout 2016.
I also believe that with the Japanese Yen inverse correlation to equities coupled with a bear market in stocks. It is likely that the Japense Yen rises in tandem with the US Dollar throughout 2016.
Perhaps what has been most surprising is the resiliency of other developed market currencies (specifically the Euro.)
As we can see, the trade weighted US Dollar (comparing the dollar against every currency including emerging market currencies) is going nearly parabolic.
As we can see, the trade weighted US Dollar (comparing the dollar against every currency including emerging market currencies) is going nearly parabolic.
This is Deflation. As credit defaults, money gets destroyed. This in turn, makes the currency more valuable.
As long as we remain in a Deflationary environment, Cash is King!
As long as we remain in a Deflationary environment, Cash is King!
RSS Feed