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I happen to believe that the dollar has reached a turning point. As this article points out, the strongest evidence supporting this view is only that it has so dramatically overshot (by at least 30%) the appropriate exchange with other major currencies based on economic fundamentals. There are also stronger cash flows and exports are rising. However, the US economy is in poor shape and may be getting worse. For this reason, betting on the dollar in the short term remains somewhat risky.

 

Submitted: Aug 25, 2008    Views: 166    Comments: 0    Likes: 1   


View Article: http://online.wsj.com/article/SB121961240718867281.html


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