This week’s Market Update is posted at Alpha Baskets and includes the following;
All of this puts up a major obstacle to the Fed’s raising rates anytime soon. All of the above have contributed to the dollar’s strength but too much strength becomes a problem for the US economy for domestic companies selling abroad. Higher interest rates would be likely to lift the dollar even higher, exacerbating the problem for domestic multinational companies. Should the dollar continue higher it would put further pressure on earnings growth which could then impact GDP growth possibly fomenting the next recession.
Please click through to read the entire update.