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Rising Equities and Slumping Dollar Greet the New Year

January 04, 2021
Overview:  The first day of the New Year, but it feels a lot like last year.  The dollar is under pressure, and equities are higher.  Outside of Japan and Malaysia, The MSCI Asia Pacific Index extended last week's 3.6% gain. It has not rallied for seven consecutive sessions. Led by mining and energy, Europe's Dow Jones Stoxx 600 is up 1.5%…
Rising Equities and Slumping Dollar Greet the New Year Rising Equities and Slumping Dollar Greet the New Year Reviewed by Marc Chandler on January 04, 2021 Rating: 5
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January Monthly

January 03, 2021
It might not feel like a New Year, as the pandemic continues to ravage most countries. On top of the human toll, the economic fallout will continue to depress activity in the first part of 2021.  However, policymakers throughout the G7 provided more stimulus in late 2020 and extended many emergency facilities well into the New Year.  This will hel…
January Monthly January Monthly Reviewed by Marc Chandler on January 03, 2021 Rating: 5
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Inflating Inflation Expectations

December 30, 2020
Rising prices feature in many economic forecasts for the US.  It is seen as part of the reflation meme as the vaccines roll out.  There seem to be three threads to the discussion.  The first is practically mathematically certain.  Economists refer to it as the base effect.  As the pandemic struck and the economy shut down, prices fell.  Headline C…
Inflating Inflation Expectations Inflating Inflation Expectations Reviewed by Marc Chandler on December 30, 2020 Rating: 5
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Of Trade Deficits and Capital Surpluses

December 28, 2020
In the middle of 2020, foreign investors owned a little more than $13 trillion more of US assets (stocks, bonds, and brick-and-mortar) than Americans owned of foreign assets.It is the other side of chronic current account deficits, the broad measure of trade.  By this measure, the US is the world's largest debtor.  It spurs much teeth-gnashing…
Of Trade Deficits and Capital Surpluses  Of Trade Deficits and Capital Surpluses Reviewed by Marc Chandler on December 28, 2020 Rating: 5
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The Dollar's Evolving Outlook

December 22, 2020
The foreign exchange market sees an average daily turnover of something on the magnitude of $6.6 trillion a day.  In a week, the turnover is sufficient to more than cover world trade for a year.  It is the largest of the capital markets.  Trends in the currency market can last for years.  A little more than a year ago, we concluded that the dollar…
The Dollar's Evolving Outlook The  Dollar's Evolving Outlook Reviewed by Marc Chandler on December 22, 2020 Rating: 5
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