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About Me

Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!

Thursday, November 13, 2014

US Dollar -- Should Be Slow, Grinding Bull

It has been my view for the the past ten years that changing US demographics, recovering
energy output and increased demand for a range of domestic specialty manufacture and
technology would lead to a gradual elimination of the the trade deficit and the elimination
of a net outflow of dollars through the trade window. The US trade deficit has been cut nearly
in half from peak levels seen a half dozen years ago and may zero out by 2020. So, back at
points in 2009 and 2010 when the USD was at 75, I began figuring it could add 2 - 3 points a
year in value and may be close out 2020 with the popular $USD index at 100.

The sharp rally in the dollar this year has been the talk of the town, and it is likely well
overbought currently. $USD However, the economics to me suggest that the dollar should
continue to work slowly higher over the next five years, and could strengthen even more rapidly
if US hydrocarbon export restrictions are lifted.


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