USD, monthly
USD, monthly2
Summary
A daily net gain of 0.6% for the USD, and we're now in the 84s. The 87s really aren't that far away. Certainly, we look set to be challenging the high from 2010/2008 by the end of this year.
A rising dollar is bearish for ALL dollar denominated asset classes. Of course, a rising dollar is just one variable, and as we've seen since early July, equities can continue breaking new highs, even with a stronger USD.
Most notable right now, precious metals, and Oil prices remain very weak. If USD does keep pushing higher, then WTIC Oil will surely fall below the $90 threshold.. and that would be a pretty major deflationary warning.
WTIC Oil, monthly'2
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Hunter with Kotlikoff - on SIPC
*the following is highly recommended for all those with a brokerage account.
I was actually aware of the discussed problem some time ago, but my head still spins when I think about it.
So.. lets be clear...if you take money from your account.. and the broker turns out to have become fraudulent... you might well be liable to repay ALL funds taken out. Just consider a few of the scenarios...
-person invest their funds in a business.... fails.... then get a request to return the money
-person buys a house at top of a housing cycle.... gets a request to return money a few years later, at bottom of housing cycle... when the house price might have seen a net decline.
-person spends their account money on the proverbial 'beer and hookers'... then gets a request for funds to be repaid.
Frankly, the SIPC system is beyond bizarre, but then... these are crazy times.
*I'm not aware if this situation is the case in the UK.
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Looking ahead
There isn't anything of significance due tomorrow, at least in terms of data points.
However, AAPL are set to make a major new product announcement.
There is fed official Tarullo, set to testify to the senate on 'wall street reform'.
*next QE-pomo is Wed', but that is a mere 0.4bn.
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Goodnight from London