No one can say for sure “what’s next”, certainly not me. But I can say that European investors need significant annual gains in US equities just to match the declining value of the US dollar.
Last week, Pater Tenebrarum at the Acting Man blog pinged me with this comment: “People underestimate how sticky currency trends are.”
Given the significance of what this trend change means for the monetary cycle and the current bubble in U.S. ‘paper’ assets, it’s eerie to watch this rollover in the dollar unfold in utter silence.
Mike “Mish” Shedlock