Loading ...HIA 2 or Long Term Cycles vs Econ 101
This is what happened to $USD the last time a US corporate tax repatriation deal was passed. Page 1 of Econ 101 is price is (normally) determined by
the interaction of supply & demand. If the $USD rallied strongly, even though it was in a LT downtrend, the last time a tax repatriation deal was passed,
why isn’t it going to do so again? Put another way, what are the pro’s going to be positioning for?
In addition, as any schoolboy knows, both the US Congress and Senate are ‘bought and paid for’ by vested interests. Both houses will pass pretty much *any* tax
repatriation bill IMO, it’s as close to a sure thing as you’re gonna get.
Interesting JL. A 15% rally from here would take us to about 117. That would be a new high in this dollar cycle rather than a pause in its long term downtrend. It’s getting very late in the dollar cycle, and, as you can see in my post below, the indicators (particularly the MACD) are looking pretty pessimistic. Still, it is a possibility. Thanks for the info.
“You pays your money and you makes your choice.”
You sure do. Cheers JL 🙂
Thanks JL…food for thought for sure.
maybe that is what this drop is about…preparing.
Exactly, drop in $USD *allows* tax repatriation deal to go ahead. Couldn’t happen if $USD was already at 100+ because, amongst other consequences, the further spike would hit the real US economy big time.
Thanks for bringing this into the conversation JL
never considered it and I don’t see anyone else doing so either