The Dollar Panic. Is it Real?
December 7, 2007 - This week as I was walking through the Houston airport, I glanced at a newsstand and noticed that the headlines of this weeks Economist magazine blared, “The dollar panic”. Normally, when an established magazine starts toting the death of the dollar, this event, combined with headlines of supermodel Giselle Bundchen demanding payment from American companies in Euros, would mark the bottom of the dollar and a time to buy into a dollar rally. However, this time is different. With firms like Goldman Sachs toting sustained dollar rallies as a possibility next year, these predictions are more likely the result of political agendas rather than reality.
If one looks at the long-term fundamentals of the dollar, there is nothing that supports the fact the dollar will have a long-term rally.
1 comment December 7th, 2007
