THAT'S MY PREDICTION AND I'M STICKING WITH IT...
MY HUNCH IS THAT THE CONSUMER IS GOING TO BE SO WEAK IN COMING MONTHS THAT THE FED WILL FEEL COMPELLED TO LOWER RATES...
DESPITE THE DAMAGE THAT WILL DO TO THE DOLLAR... CURIOUSLY THE WEAKNESS IN THE CONSUMER WILL BE CAUSED BY GAS PRICES, WHICH IN TURN IS CAUSED BY THE WEAK DOLLAR, WHICH IN TURN IS CAUSED BY THE FED'S NON-COMPETITIVE RATE ENVIRONMENT VIS-A-VIS OTHER CURRENCIES.
BUT WALL STREET WILL BE CALMORING FOR A WEAKER DOLLAR NEVERTHELESS...NOW THAT THE DOW MULTI-NATIONALS HAVE FOUND THEIR FOOTING, AND ARE AT RECORD HIGHS...BECAUSE OF...NOT DESPITE THE WEAK DOLLAR...!
RATE HIKES BY FOREIGN CENTRAL BANKS WILL ALSO WEAKEN THE DOLLAR RELATIVELY...
BUT THE HUGE SUMMER RALLY IN STOCKS MAY MITIGATE AGAINST THE WEAK DOLLAR, AS MORE OVERSEAS TRADERS SEEK TO JUMP INTO THE RALLY WITH NEWLY BOUGHT DOLLARS....
