Friday Market Wrap


The market sold off today because treasuries got killed (yield up). Also the U.S Dollar  looks higher. I think that once the initial shock that rates are going higher gets absorbed the market will be fine.

There are a number of implications embedded in the strength of the greenback.

  • It will help tamp down dollar-denominated commodity prices
  • It will help keep inflation pressures in check
  • It will helps make overseas travel more affordable for US citizens
  • It will raise the appeal of owning US assets for foreigners in countries with a weakening currency
  • It will enhance the competitive influence of foreign exporters; and
  • It will weigh on the earnings prospects of US multinational companies (conversely, it will boost earnings prospects for foreign multinational companies)
We have known for a while now that the Fed is close to wrapping things up. This is a good thing in my opinion, and maybe now the market will go higher based on old fashioned reasons. Earnings and growth.   Not financial engineering.
I still think we are going higher into year end. Have a great weekend.  I will be out with setups and strategy for Premium members over the weekend.
Previous Post
Why the Market Could Go Nuclear
Next Post
King Dollar and Stocks

Recent Articles