U.S. Dollar Up, Gold/SPY Down
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Steven Jon Kaplan4.42K FollowersFollow5ShareSavePlay(14min)CommentsSummaryThe myth of an upcoming accelerated pullback for the U.S. dollar has encouraged at least three well-known financial publications to highlight the alleged upcoming plunge for the greenback.As the U.S. dollar at first gradually and later more convincingly moves higher rather than lower over the next few years, this will lead to eventual depressed valuations for most assets, including stocks, commodities, corporate bonds, and cryptocurrencies. Only U.S. Treasuries, TIPS, and related U.S. government debt is likely to benefit from a strengthening U.S. currency.Besides the nearly unanimous negativity surrounding the U.S. dollar, the media have featured numerous other myths. One popular recent fairy tale is that because of Iran or some other combination of factors, energy prices will allegedly remain "permanently high." alfexe/iStock via Getty Images Whenever any asset has made an extended move in one direction, and is about to make a huge move in the opposite direction, the vast majority of analysts, brokerages, and investors become convinced that the trend of recent yearsThis article was written bySteven Jon Kaplan4.42K FollowersFollowSteven Jon Kaplan began TrueContrarian.com in August 1996 as a value-investing newsletter which since March 2020 has included two weekly 75-minute Zoom meetings. Steve provides long-term tax and investment planning. He has been trading since 1981 and handles separately managed accounts for qualified clients with a 20% performance fee on net profits and zero management fees. Steve has been quoted frequently by U.S. News and World Report, MarketWatch.com, and Barron's. Steve appeared on Market Watch cable TV with Stacey Delo and was interviewed by Alisa Parenti on Bloomberg and Tucker Silva on WRKO. He enjoys running with the New York Road Runners, composing and performing on piano and voice, writing stories, and traveling to unique places. Please let Steve know what you think of his financial ideas or any other worthwhile topic.