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   DIR Return to: 2017 Hong Kong WEC Slides
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       #Post#: 43--------------------------------------------------
       Dollar Strength and the Dow Bull
   DIR By: KingDavid
       Date: June 21, 2017, 8:09 pm
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       Dollar Strength and the Dow Bull:
       Looking at the Dow’s Performance in All Currencies
       Marty’s PowerPoints (II at p.22/55) show the sharp rise in the
       Dow since the last bottom in 2009: it’s a sharp angle in an
       unbroken bull channel.
       However, Marty looks at performance in [u]all currencies.  In
       fact Marty does not consider a market to be a true bull market
       unless it is rising in all currencies.  (Gold, for example, is
       not now rising in all currencies, e.g., not in the US dollar as
       respects the current temporary correction).
       To illustrate this for the Dow, Marty displays the performance
       of the Dow in the following foreign currencies, together with an
       IMM chart separately showing the performance of each foreign
       currency:
       Page
       
       23
       24
       25
       26
       27
       28
       In the case of each currency, the performance of the Dow is
       noticeably more bullish than it is for US citizens investing
       with their dollars.
       This is because of currency.  Australian, British, Canadian,
       European, Japanese and Swiss investors in the Dow are
       benefitting from
       1)
       2)
       currency.
       This is the same dynamic that led to the Nikkei bull from 87-89:
       it attracted capital from around the world because both the
       value of the Japanese assets and the value of the yen they were
       denominated in were rising, giving foreign investors a double
       return on investment and a double pay out upon cashing in.
       This is a brilliant and unforgettable example of how worldwide
       capital flows and currency exchange can align to create a strong
       bull market.  It is this type of explanation that can furnish
       the confidence to trade the Dow knowing that these trends are in
       place and are likely to remain in place for some time.
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