Is The Dollar Dying A Long Slow Death ?
On the basis of the last few 15 year cycles, the answer is yes. Notice on the chart below that in the 1980’s the dollars ascent registered a 76 degree angle. In its next bull run in the late 1990’s, it managed to climb at a 56 degree angle. That’s approximately 70% of the previous achievement. The following bull run (just ended), only managed 70% of the last one in terms of it’s angle of ascent – it achieved just 39 degrees. Why does this matter ? Well it’s indicative of a loss of ‘traction’, a loss of energy if you like. Each successive cycle produces a weaker bounce.
We can also see that there is a pretty consistent angle of descent following each bull (58-60 degrees), taking us to the ultimate low. Using this as a guide, and I know this may sound crazy, but it projects a low of somewhere close to 50 in 2025. Beyond that, we might reasonably expect a shallower angle of ascent for 7 or 8 years taking us to a lower high. How low does it need to go before it dies ? I don’t know, but one thing is certain – PM’s will be a good place to be for many years to come.
Here’s the chart
out of the box stuff. just the way I like it.
Thanks Spock. The dollar cycle is so clear. Once that 200dma is breached, I suspect gold and the miners will make a simultaneous breakout. Either that, or I’ve got it all wrong, the dollar flies to 120, gold dumps and I wish I’d just stuffed my savings under the mattress instead 🙂
Nice Northstar!
Cheers 🙂
I have been following a 40 year USD quarterly. USD just crossed the 13 EMA to the down side in July making it the 3rd downside cross in the last 40 years. If the current trend continues like it did in 1985 and 2002, this should be fun to watch. Thanks again for for the post.
Complacency seems to rule at the moment. As you say this could get very interesting.
As I posted previously you are on fire NS, which is unusual for a meteorologist as usually you are looking at the rain 🙂
I really hope you are right and I am getting fed up with the sideways action but see my new post in a minute!
That’s pretty scary. I guess the rule is to have assets.. some kind of assets..