Jun 11 2012

US dollar safety bet – Investors crowd into US dollar trade. How long will this last?

The US Dollar trade is becoming a heavy bet for investors.  I don’t like trades that are based on negative aspects.  The US Dollar is benefitting from the Euro crisis and the overall safety bet.  Yet this isn’t exactly the best way to invest.  This is like choosing the best of the worst companies and […]

Jan 6 2010

U.S. Dollar and the 1971 Shock: How Going off the Gold Standard is now Coming Back to Harm the U.S. Dollar. The 40 Years Spending Spree.

The U.S. dollar has been on a wild rollercoaster ride for decades.  Most Americans rarely concern themselves with currency markets or larger macro economic trends.  Yet this is such an important financial area to understand since Americans are paid in U.S. dollars.  It is fascinating to understand why the U.S. went off the gold standard […]