The dollar has been able to continue this rally, even with many different announcements made by the Central Bank. Jack Crooks feels as though it is time to keep the dollar in sight, especially as other economies start to catch the economic bug.
Some have been wondering if the dollar can sustain its run. The concern is that if we prop it up, our goods and services might not be as enticing from a value standpoint. However, new information from overseas seems to indicate that they may be in the fourth or fifth inning of an economic downturn, while we’ve already felt the brunt. Those foreign economies might have to cut interest rates, further propping up the dollar.
The bottom line is: we can tell you five reasons it will go up, and another five reasons it will go down. It’s in an uptrend now, and you can’t fight the trend.
An ETF that is bullish on the dollar is:
- PowerShares DB US Dollar Index Bullish (UUP), down .4% year-to-date, but up 6.1% over the past month.
For full disclosure, some of Tom Lydon’s clients own shares of UUP.