The following is automatically syndicated from Grandich’s blog. You can view the original post here
If there’s one investment theme I haven’t strayed an inch from it would have to be my U.S. Dollar outlook. I’ve said from well over a 100 on the U.S. Dollar Index that the only party that doesn’t know the U.S. Dollar is dead is the U.S. Dollar. When the â€œhappyâ€ people came out of their bunkers and said a new U.S. Dollar bull market was underway, I simply called the dollar â€œDead man walking:.
My readers want straight-forward, no-nonsense commentary from me. They know I won’t always be right but so long as I’m clear about my view and don’t try to hide when I’m wrong, I believe they will respect me in the morning. With that in mind, let me ground the following into the minds who have not yet fully grasp it:
The only long term path for the U.S. Dollar is down and the only long-term path for U.S. interest rates is up.!!! In fact, the Vancouver Canucks have more of a chance of winning the Stanley Cup than me being wrong on this assessment. I’ve explained why in past comments and will continue to do so as the dollar* slides further into 2010 and beyond.
The chart can be useful to those who are still looking to get on the short side. It’s not uncommon after an uptrend for the price to rally back to that uptrend. But one must use significant rallies strictly as selling opportunities. I’ve hammered home the belief that the dollars slide recently had lots to do with more critical countries publicly announcing their desire to move away from the dollar as a world currency. That march will only gather more members as America”s debt binge skyrockets out of control.
Former Comptroller of the Currency David Walker says his â€œPlan Bâ€ is to move to Vancouver, British Columbia. Perhaps I should do a little house hunting on my trip up shortly. But if I do resort to plan B, do I have to root for the Canucks (I sooner wear an Obama tee shirt)?