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A Crowded US Dollar and a Possible Slowdown for the DAX

By February 13, 2015August 9th, 2016Weekly Market Observations (Archives)

By James Dondero | February 13, 2015

  • While a big winner the past several months, we continue to believe the US Dollar is a ‘crowded’ trade, and that further consolidation may be ahead for the greenback – as well as for crude oil.
  • Stocks again improved nicely this week, and while they have yet to break decisively out of their recent trading range, it is looking increasingly likely the bulls will win this tug-of-war. We base this on the strength in the technology and consumer discretionary sectors, which appear poised to lead the market higher.
  • Finally, while we continue to believe European sovereign debt purchases by the ECB will be bullish for the markets, we would caution investors that broad market indices such as the German DAX are unlikely to gain at their current pace (up 12%, YTD).

The views and opinions expressed are for informational purposes only and are subject to change at any time. This material is not a recommendation, offer or solicitation to buy or sell any securities or engage in any particular investment strategy and should not be considered specific legal, investment or tax advice. There is no guarantee that any of the forecasts will come to pass. Past performance is no guarantee of future results.