It looks Dollar has topped out around 80.
I wrote first uncannily predicting dollar’s short term rally[ Alert!! Imminent decline in Market with rally in Dollar, Link https://investmentacademy.wordpress.com/2009/12/07/alert-imminent-decline-in-market-with-rally-in-dollar/] further on its continuation comparing it with Euro economies [ $ will continue up move!!!!, link: https://investmentacademy.wordpress.com/2009/12/17/will-continue-up-move-2/ ].
In both of above reports, I repeatedly mentioned that This Rally is short term bounce in long term bear market of Dollar and 81 is a very stiff resistance to breach for Dollar index.
I again reiterated my long term outlook of dollar by writing further two reports on it.
[ $ is Obama’s last priority, Link: https://investmentacademy.wordpress.com/2010/01/31/is-obamas-last-priority/]
[ Obama vowed to devalue dollar, link: https://investmentacademy.wordpress.com/2010/02/04/obama-vowed-to-devalue-dollar/ ]
Let me show you long term chart of dollar today, this should clear most of the doubts, if any still left, about long term bear market of dollar.
It is very clear from above chart that Dollar index topped out around 120 in 2001 and since then trading in bear market, which is now to accelerate thanks to weak fundamentals of US and FED’s printing of dollar out of thin air for an extended period and it is to continue for time to come.
Recent rise looks very much like dead cat bounce on chart.
And, my blog readers and news letter recipients know the relationship of Dollar and Gold, Dollar and Emerging markets.
With rally fading in dollar, allocations to emerging equities and Gold should definitely rise.
I expect, Gold and China to perform better in time to come as they are best contra dollar assets.
So, if you have not invested in Gold and China, time to act is NOW.
I shall write in detail, in short period.
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