IF everyone and their neighbor is playing the weak dollar long equitie trade...then a nasty correction will occur when the dollar corrects and hyper-inflation fears are set aside.
....I assume longs are very weak handed not buying fundamentals .. no hint of inflation except commodity price appreciation driven by OUR FUTURE INCOME TAX PAYMENTS ...talk about hitting us in the shorts twice :) ..... not a supply demand issue,,,,bond market not pricing in inflation or is that being manipulated too?
so would most agree a dollar correction is inevitable? Just seems like the market is very ineffecient and doesnt make since........i guess this is how manipulated markets act?
is everything priced in near top since the media started pumpinng the weak dollar long equity trade the last couple weeks ....when the trade has been on for a few months
All this eventually self-corrects in a 'free' market. If we are recovering, the dollar should strengthen. If bigger deficits are the fear, then interest rates should trend higher, meaning the dollar should strengthen.
The problem right now is that the Fed and Treasury are keeping rates artificially low, but QE is almost out of money and should end soon. That should help the dollar.