THE SOARING US DOLLAR

The US dollar is soaring because the growth prospects in the USA are better than in the rest of the world. This week, EU central bankers will cut rates to improve the prospects for future growth. Canada cut rates last week, Australia cut rates last month and there are more cuts on the way. Long term mortgage rates in the USA have once again fallen to 6%. Credit spreads are narrowing. The surge in the US dollar is consistent with strong relative US stock market performance. After real estate recessions, US stocks tend to do better than international stocks. Good times are around the corner.