The U.S. dollar is the single most powerful herd dynamic in global
financial markets today. And financial markets are unlikely to let a
good bubble go to waste, emerging market asset manager the Ashmore Group
said in a report on Monday.
Between now and the return of inflation in 2016, investors are likely to continue to pour into dollar assets — from securities to real estate. Meet the new bubble: the American greenback.
“The current strength of the dollar is evidently a bubble,” says Jan Dehn, an economist with the Ashmore Group, a fixed income manager with around $70 billion under management. The dollar obeys short-term flow dynamics, while ignoring fundamental arguments. ”If you doubt that the dollar is a bubble, ask yourself this question: when was the last time you met someone who was not bullish the dollar?”
http://www.forbes.com/sites/kenrapoza/2015/01/26/meet-the-new-bubble-the-u-s-dollar/?partner=yahootix
Between now and the return of inflation in 2016, investors are likely to continue to pour into dollar assets — from securities to real estate. Meet the new bubble: the American greenback.
“The current strength of the dollar is evidently a bubble,” says Jan Dehn, an economist with the Ashmore Group, a fixed income manager with around $70 billion under management. The dollar obeys short-term flow dynamics, while ignoring fundamental arguments. ”If you doubt that the dollar is a bubble, ask yourself this question: when was the last time you met someone who was not bullish the dollar?”
http://www.forbes.com/sites/kenrapoza/2015/01/26/meet-the-new-bubble-the-u-s-dollar/?partner=yahootix
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