This Could be the Start of Something Big
The U.S. Dollar going all the way back to '93. From '95 to '02 the long term trend was up up up. Seven year trend. Down trend went from '02 til maybe now. Both the weekly and daily charts look very strong. The Eurotrash may want to buy U.S. assets with strong currency before times change. They have been quietly buying high rent homes in places like Pebble Beach and Palm Springs. They could buy half the West Coast should they choose. We may be at the start of something big.
1 comment:
Howard maybe my inner paranoid is typing this but I have a hunch the dollar was deliberately tanked by Uncle Sam. After the stock market bubbles of the 90's came the real estate bubble of the 00's and now the commodities bubble (which is always a mirror of the dollar) something was needed to bail out the real estate and financial markets. Every bubble created to bail out the mess created by the previous bubble. Get the foreigners to buy our distressed real estate and bail us out of the current jam with the added benefit of helping our exports.
The euro and pound are artificially overvalued and the smart Europeans know this. A great time for what is in essence for them a 60% discount in many cases for desirable real estate and other assets. In 5 years time to could sell and make a killing when they convert back to euros and pounds. And we not only avoid a fair amount of pain but get to buy back cheap by our standards.
Post a Comment