Wednesday , 6 December 2023

Sorry Bears – The Facts Show That the U.S. Recovery Is Legit – Here’s Why (+2K Views)

Today, I’m dishing on the unbelievable rebound in residential real estate, pesky  rumors about the dollar’s demise and a resurgent U.S. stock market. So let’s  get to it.

So writes Lou Basenese ( in edited excerpts from his original post* entitled Friday Charts: Three Trends You  Won’t Believe Are Gaining Momentum.

This post is presented compliments of (Your Key to Making Money!) and the Intelligence Report newsletter (It’s free – sign up here) and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

Dollar Bears Be Damned!

We’ve heard  it for years. The U.S. dollar is doomed and its demise could happen any day now! Well, it’s time to replace the dollar as everyone’s favorite currency to malign…[because,] lately, courtesy of  the banking woes in Cyprus and the ensuing flight to safety, the U.S. Dollar Index is up over 5% in the last two months [as can be seen in the chart below].

Don’t Bet Against History

I know, I know, it’s merely a head fake before a massive collapse, right? [Wrong!] That’s what the dollar bears want us to believe but new research out of Deutsche Bank, however, suggests that we might want to think  otherwise.

Dollar cycles historically last for six to 10 years…[and] Deutsche Bank is convinced that we’re on the cusp of another up cycle or, as its  analyst puts it, “We expect the USD has now entered a sustained multi-year  uptrend.”

Go Global or Go Broke… Or Not!

Not long  ago, analyst after analyst warned that the supremacy of U.S. stocks would come to an end and [that] those sorry investors who didn’t rush into traditionally much more volatile international and emerging markets would regret it big time…

[The fact is, though, that] U.S. stocks…have been outperforming other global markets…[to the extent] that the United  States’ share of the world’s total stock market cap keeps climbing.

[While] the  current reading of 33.63% underscores the fact that 66.37% of investable  opportunities remain outside our borders [and that, as such,] we should be allocating a portion  of our portfolio to them, too,…[we shouldn’t] sell our U.S. stocks to do so. Such neglect or disdain  could come back to bite your bottom line.

How Do You Like Them Real Estate  Prices?

If there’s  one bold prediction I’ve taken serious heat for, it’s last February’s call that the real estate market hit rock bottom….[and now] that moment has officially arrived. [As can be seen below in the latest] reading for the widely tracked S&P/Case-Shiller Home Price Index prices increased  8% in January, year-over-year, [and] the trend is accelerating, too.

Bottom  line:

The recovery is legit. [Be that as it may, however,] the obvious investments are getting frothy [which] means, as I’ve noted before, it’s time to trim up our stops and think  about putting new money to work in the sector elsewhere.

Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.


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