Are There Too Many Dollar Bears?
October 11th, 2007WARNING: This is not a recommendation to buy, sell or hold any financial instrument.
With the U.S. Dollar Index currently printing all time lows, this Peter Schiff article seems appropriate.
Via: Kitco:
For the dollar to register a significant short-term bottom based on negative sentiment, I feel there would have to be a much greater sense of panic associated with its weakness. However such is clearly not the case. The overwhelming consensus is that a weak dollar is good for America. Ironically there is more worry in Europe over the strong euro than there is in America over the weak dollar. My prediction is that before we get any significant dollar bounce this complacency will need to be replaced by outright fear, and that the dollar needs to fall more sharply as investors actually act on those fears by dumping dollars.
Of course should such a run on the dollar commence, it will not be the orderly decline everyone seems to expect. However, I am still not sure why so many feel a declining dollar is not a problem so long as it does so in an orderly manner. If you’re headed to the poor house what difference does it make how you get there? Whichever road you travel, you’re just as broke when you arrive!
