Credit to https://fried.com
Interesting insight by an author, James Picerno.
The US dollar has had a rough ride so far in 2017. The Federal Reserve’s Trade Weighted US Dollar Index that tracks the major currencies has tumbled roughly 8% year to date through last week’s close. The greenback’s slide, however, has delivered a substantial return premium for US investors who own foreign assets in funds sans currency hedging.
This powerful and protracted bull market has made Cassandras look foolish for a long time. Those who went on record predicting that massive central bank manipulation of markets would not engender viable economic growth have been proven correct. However, these same individuals failed to fully anticipate the willingness of momentum-trading algorithms to take asset prices very far above the underlying level of economic growth.
Nevertheless, there are five reasons to believe that this fall will finally bring stock market valuations down to earth, and vindicate those who have displayed caution amidst all the frenzy.
by Pinchas Cohen
Global stock momentum is heating up. Asian equities advanced for a ninth consecutive day, fired by yet another US equity record, and after the Bank of Japan, as expected, kept its unprecedented monetary stimulus. European stocks followed global counterparts higher.
FRANKFURT (Reuters) – New accounting rules for banks risk exacerbating economic crises by making them reluctant to lend if the economy suddenly worsens, the European Union’s financial stability watchdog said on Monday.
Guess which two markets I am watching right now?