Why The Dollar is Going to Strengthen From Here
To us it is quite simple. The US is still the big dog. Things are not going well here but if they don’t go well here they will be worse in the rest of the world, especially China and Europe.
The employment numbers today were worse than expected. No surprise. The turnaround is quite tepid for a lot of reasons, not the least that Congress is spending most of its time arguing with the Administration rather than pushing quickly for strong measures. We said in January before Obama got in office, with a bubble leverage problem this big in the country as a whole, the only thing that will turn it around is a “Green Revolution” of a magnitude that will jump start the direction of the country. The number needed to make it happen was $ 9 trillion dollars. Washington has not done that, they have been wasting $ 1 trillion at a time putting fingers in the dike. This is a course to the poor house.
In the meantime, while it pains me to have to be short the stock market when I would like to see it breaking out to the upside, the facts force us to be 70 percent short the market until someone gets their act in order, namely the conservative Republicans and the blue dog Democrats. We don’t need more stimulus, we need meaningful investment in a new approach. I will be on vacation next week, there will probably be days when we don’t post, but the issues here will probably not change in a week.
The EMA ETF Fund NAV was 1171 at the close yesterday.
7:56 AM CDT