Posted by: jhamon | August 20, 2009

MysteryHedgie: Dollar Pessimism Suggests A Low, Not A High

MysteryHedgie comments on current dollar meme:

The US$ (DXY, see below)…this week, Warren Buffett, PIMCO, Richard Russell and Jim Cramer have all opined about expected $ weakness as Obama’s massive spending puts the US ever deeper in debt.  This is a legitimate long term concern;  medium term, the tender state of the global recovery is not likely to cause the marginal creditor, China, to aggressively seek repayment,  and the bearish sentiment against the $ is almost as high as it was at the last trading low in March 2008.  We continue to believe, as we’ve stated previously, that the $ is making a trading low and will rally smartly into year end (especially vs. G7 FX), and we like the idea that the most successful investor of the last 3 years  is rumored to be a large $ buyer, an early value voice in an ocean of bears…..                 

Dollar Pessimism Suggests A Low

Dollar Pessimism Suggests A Low

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Responses

  1. So, which relationship will hold, dollar up, market down, or dollar up market up??

    • Not sure, Art. Just passing my buddy’s thoughts along. I just let our algorithms work.

  2. […] Hamon over at Outside the Box thinks we are going up from […]


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