Interesting. The stengthening US dollar could be the next financial trigger meltdown
Many debtors including countries have their debt in US dollars. If they do not have US dollar inome, the stregenthing could wipe them out. Makes sense. We proudly accept US Dollars at this point regardless of what you may have watched recently on Youtube. Don’t that growing student debt too which is as bad as the housing mortgage debt
With the Euro zone basically falling apart, the world heading into another global recession ( possibly depression ?! ) and Gold / Crude Oil / Commodities in free fall, the US Dollar shines as a safe haven in an increasingly dangerous and volatile world. The red hot USD has been breaking major resistance levels and medium to long-term downtrend lines as of late. We are currently bullish on the US Dollar against most world currencies and particularly so against the “risk currencies” i.e. Australian / Canadian / New Zealand / Singapore Dollars
2012 forecast: Equities weak, look at US dollar and gold
The charts are telling us that equities are still bearish. Which means the US dollar and gold still have some traction.
Agreed… too many U.S. equities are invested in the European market. When the Euro collapses, U.S. equities will suffer some. And for the time being, the dollar is still a perceived safe haven… but in the final analysis, Gold will be the only place to hide. We believe this will all take place during 2012.
When the euro collapses… equities weak… it is the same story for the past 3 years! Gold and greenback can be fairly safe but dont tend to generate systematic and coherent returns apart from points of extreme uncertainty (which no doubt occured in the past 3 years and is still occuring). In terms of investing I would be keen towards commodities (both producers and traders) and in terms of trading, I think it is quite a good time to take advantage of the equities volatility