The rationale for predictions of continuing strength in the dollar are well-known but may be wrong, writes Ben Levisohn for Barron’s. Fundstrat strategist Thomas Lee looked at the last 11 tightening cycles (when the Fed began raising rates) and found that five involved “divergence” from European central banks (meaning that they were easing), which lasted a median of 17 months. During such times, according to Lee, the dollar has typically weakened a median 6.6% during… Read More
Wells Capital’s James Paulsen says a commodities rebound will depend on what the dollar does, and he thinks the dollar has been in “peaking mode” since March.
Mohamed El-Erian says he expects volatility to increase in the stock market, and says it’s not a time to be buying broad index funds.
Top strategist Ed Yardeni thinks it could be a while before we see the end of this economic expansion — and by extension the bull market. But he also says that very few stocks are cheap anymore.
The U.S. dollar has been red-hot lately, and some of the drivers behind its ascent may be in place for the longer term. That could mean good times for US small-cap stocks, Validea CEO John P. Reese writes in a recent column.
Top-rated economist Francois Trahan is sounding very bullish on stocks — particularly small stocks — and the big reason is the US’s positioning relative to the rest of the world.
Reiterating his belief that the U.S.’s stimulus policies will lead to inflation, Warren Buffett says investors should steer clear of long-term American fixed-income investments, because the dollar will not hold its purchasing power over the next decade or two. “I would recommend against buying long-term fixed-dollar investments,” Buffett said at a news conference during his recent trip to India, Bloomberg reports. “If you ask me if the U.S. dollar is going to hold its purchasing… Read More