AS THE DOLLAR DROPS...THE DOW CAN RISE...OR BE "REPRICED" FOR THE WEAKER DOLLAR....
THIS IS THE REAL STORY BEHIND THE RECENT SPRING RUN UP IN THE DOW...
THEN, FOR A WHILE THE DOLLAR STABILIZED AND THE MARKETS WENT NOWHERE...
BUT NOW THE DOLLAR IS DROPPING AGAIN...AND THE DOW ROSE TO MATCH THE DECLINE IN THE DOLLAR...
THE PROBLEM WITH THIS "HAPPY" SCENARIO IS THAT GOLD AND OIL GO UP TOO...
AS THEY DID TODAY...AND EVENTUALLY BOND YIELDS INCREASE...AFTER ALL THAT'S HOW WE GOT OVER 5% IN THE FIRST INSTANCE THIS YEAR....
SO IF YOU WANT A 14,000 DOW...YOU MUST ACCEPT $80 OIL...
AND FOR AN 18,000 DOW...WHICH I PREDICT WILL BE THE CLOSE ON DECEMBER 31...YOU'LL NEED OIL AT NEARLY $120...!!
YES THE DOW CAN RISE...BUT ONLY AT THE EXPENSE OF INFLATION...AND $5 GAS!
ANOMALOUS DAYS LIKE TODAY...TELL A DISMAL STORY TO THOSE WHO HAVE THE WILLINGNESS TO SEE IT...
