Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
Story Views
Now:
Last hour:
Last 24 hours:
Total:

The Dollar Could Be Starting a Multiyear Bear Market

% of readers think this story is Fact. Add your two cents.


The U.S. dollar’s plunge has been one of the major financial stories of 2017…
The dollar soared from 2011 to 2016. But things changed this year.
The greenback recently hit its lowest level since early 2015. It has now clearly broken down from a multiyear uptrend. And history says this downtrend will likely continue.
The dollar could continue falling for another two years.
Let me explain…
Major currencies tend to move glacially. They have slow, long-term moves higher or lower… not drastic crashes or spikes.
So this year’s decline isn’t something that happens often. The dollar is down 9% in just the first eight months of the year – a massive fall for a major currency.
This is also a major break in the dollar’s previous trend. Take a look…
This quick fall could be a sign of a much larger downtrend.
History says that this kind of decline – 9%-plus in eight months – means a new downtrend is here. And that’s a bad sign for the dollar over the next few months… and potentially years.
Since 1980, similar quick dollar declines led to further declines over the next two years. The table below shows the full details. Take a look…
6-Month
1-Year
2-Year
After extreme
-1.6%
-4.7%
-7.0%
All periods
0.1%
0.2%
0.4%
Like many currencies, the dollar hasn’t moved much over the long term. But large declines tend to lead to further falls.
After 9%-plus declines like we saw recently, the dollar went on to fall 1.6% in six months, 4.7% in one year, and 7% over the next two years.
That may not sound like much… But it’s a huge fall for a world currency.
More important, this signal tells us that the dollar’s decline will likely continue… potentially for years.
Now, in the short term, the dollar is overly hated by investors. And as contrarians, we know that could mean a bounce in the near future. But that’s the short-term picture…
Today, the long-term trend is clearly down… And the recent decline we’ve seen points to more losses ahead, based on history.
This isn’t all bad news… If we see a multiyear fall in the dollar, one way to profit is through foreign stocks. A falling dollar is a tailwind for stocks outside the U.S.
Gold also typically soars when the dollar falls. The metal has already entered a solid uptrend.
In any case, the greenback’s decline could just be getting started. Don’t be surprised if this is the beginning of a multiyear downtrend.
Good investing,
Brett Eversole


Source: http://www.stansberryresearch.com/dailywealth/3648/the-dollar-could-be-starting-a-multiyear-bear-market



Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.