The dollar continues to strengthen against a basket of major currencies. And as for Oil, the only surprise to me is that the global economy is humming along right now. We are finding out that the stimulus package is making the process of rebalancing the world’s reserve of liquid reserves a lot easier.
The economy is the right time. The dollar has maintained a pretty good value for over five years as the dollar index has risen steadily. It’s always nice to find out that you can get some stability with a little investment.
A lot of folks worry about the dollar’s dollar value. But for those that have been investing in the market, it’s easy to see why they think that way.
The reason I like to say things like “it’s easy to see why the dollar’s worth so much” is because there’s not a lot of volatility in the market. There is very little risk that you can lose a significant portion of your money. That makes sense.
If it’s not easy to see why the dollar’s worth so much, well, then I’d like to suggest another theory. The problem with the global economy is that it has run out of gas.
Yes, there are still some quarters left and lots of stocks and bonds left and other things left on the shelf in the long run. But for the moment, there really isn’t a lot of room for the people who own this country’s gold to do anything except wait and see how things go from here. You know, if you will excuse the pun.
More folks think that the dollar’s dollar value is higher than ever. When I hear that I think to myself “well, I guess they’re right.” Those are the people who were holding their money for a recovery period and who have made their calculations and come to the conclusion that the time is right.
They’re not the ones who are holding on to their gold for the long run and who don’t know where it’s going to be at the end of the day. They’re the ones who bought precious metals for a recovery period and who are now seeing the sun rise.
I always tell people that the most difficult thing about the dollar’s dollar value is that the supply of dollar has plenty of room to grow. So when they talk about gold’s future growth I tell them “why don’t you just try to hold on to it for a little while longer?
And then after a couple of quarters, they’ll start telling people that the dollar’s dollar value is a lot lower than it used to be. But if you are at that point in your investment, why are you holding on to the dollar anyway?
I think that is the biggest reason why many of these people aren’t in a hurry to buy the dollar at this point because they haven’t had a chance to see its dollar value or how low it might go. when the tide goes out.
There are a lot of folks in that category who I think the best thing for them to do is sit tight and wait for some time for their dollar’s dollar value to recover. after all, they’ve been trying to get out of dollars long enough and it’s probably better to wait a little bit longer than to make sure.