Jack the Pipper

Here’s a retrospective and, hopefully, some perspective on the drivers of the long-term trends in the US dollar index in the era of free-floating after President Nixon closed the gold window on August 15th 1971 and rendering the Brenton Woods system to the dustbin of history.

I am painfully aware, through real money loss, correlation is not causation. And often said correlation can break down just at the worst time—when you bet on it. Even more concerning is the belief diversification of portfolios is based on the idea of “non-correlation.”

Jack shares a review on major currency pair charts and broad market commentary!

The fact the dollar could not sustain a rally despite the much stronger than expected US jobs report might be saying a lot; we don’t know yet but the rational man would have expected much more given the setup and the rising yield differential in favor of the dollar.

Despite the UN tribunal ruling that China has “no legal basis” for its expansive claims in the South China Sea, China is digging in and saying they refuse to accept the decision. [Bill Haden. The South China Sea, Yale University Press.]

Well, the Brits decided to leave. Those of us who prefer smaller government to bigger; prefer more liberty to less; prefer greater economic freedoms than fewer; prefer entrepreneurism to big business cronyism; and prefer sovereign nation states to supra-national authorities are very happy right now.

Given that the aim of the European Union is to eliminate democracy by reversing the result, as perceived by the European Union, of the Second World War…

If staying in the EU is so good for UK exports, why is it running a gaping current account deficit and ever-widening current account deficit?

Today’s short story starts with China’s investment overhang…or malinvestment for lack of a better term…

Commodities prices have staged a nice bounce. We have been long in our Key Market Strategies service and captured some decent gains.