Wednesday, December 06, 2006
The New York Times : Bearish to the Bone
Here is the weekly bar chart of the US Dollar Index which I showed you in this post a couple of days ago.
Much to my surprise the New York Times this morning published an unequivocally bearish editorial on the dollar. This editorial is similiar to the one they published in early April 2005 and upon which I commented in this post.
Today the Times tells us:
"Investors remain largely focused on economic weakness in the United States and gathering strength in Europe - which portend a weaker dollar, no matter what anyone says."
"A weaker currency is inevitable for a country as indebted as the United States is."
"The great unknowables are the timeing and steepness of a sustained dollar decline."
The New York Times is an exquisitely bad market timer. This editorial reinforces my conviction that the dollar index will hit 100 before it hits 80.