The Strong Dollar Is a Problem for Stocks

The dollar has been on a bullish path since early 2021.

Rising US Dollar Is a Mirage

All fiat currencies, including the US greenback, are losing value in the current global economic landscape.

The Federal Reserve, Inflation and the US Dollar

Why hasn't the dollar rallied stronger in the face of a very likely European recession?

BlackRock's Rick Rieder Says Resilient US Economy Will Support Equities When Bond Yields Rise

The U.S. economy is more resilient than many think, giving equities room to rise further while benchmark Treasury yields will likely lift to over 1.25% next year, said Rick Rieder, BlackRock’s Chief Investment Officer of Global Fixed Income.

U.S. government stimulus and Federal Reserve monetary policy are helping cushion the economy from the slump during COVID-19 and businesses operating virtually have posted productivity gains, Rieder said at the Reuters Summit. U.S. economic growth rebounded in the third quarter as more than $3 trillion in government COVID-19 relief helped millions of unemployed people cover expenses.

The Dollar Is About To Rebound Some

While I am convinced that the Fed wants the U.S. dollar to be weaker, and is actively trying to nudge it lower, I think we are headed for a rebound in the next month or two. One reason is that there is an election coming, which increases uncertainty in financial markets, making the dollar a safe-haven trade.

Graphs are for illustrative and discussion purposes only. Please read important disclosures at the end of this commentary.

I do not believe that the doll...