Saturday, June 6, 2009

US Dollar (and Euro) Video Update

This video walks through possible price patterns that are forming in the US dollar and Euro, with the main focus on analysis of sentiment data related to the US dollar and Euro.

In sum, a strong case could be made for a dollar bottom (probably long-term) forming or already formed. If so that would almost certainly lead to lower commodity prices coming soon, and also that deflation is likely the coming economic reality, rather than inflation.....but only time will tell.

As the saying goes for deflation "Cash is King." This is said because the value of your cash/dollars are increasing, while almost every other asset class is declining in value. So for most investors, the best bet is to just hold on to cash, though speculators/traders would have ample opportunity to profit from shorter and intermediate term swings.


No comments:

Post a Comment