Jul 25, 2017

The Big Story in the Market: Continued Weakness in the US Dollar

Let me get to what's been going on in in the market. The big story in the market is the continued weakness in the US dollar.

Remember the Dollar Index rose about 6% between the election of Donald Trump and the inauguration day. The reason for the rally was the optimism surrounding all the economic growth that we were going to get as a result of tax cuts, deregulation, all this stuff that was going to happen. 

 Of course all this was also going to result in a tighter Federal Reserve because we were now going to have fiscal stimulus and so we weren't going to need as much monetary stimulus. Now remember at the time I argued that that was nonsense and of course so far I'm being vindicated because here we are were six months into the Trump presidency and nothing has happened.