Look at this chart of the U.S. Dollar futures over the last 10 years. You can see why Rodney stood alone in enemy territory last May.
The greenback’s value slid lower since 2001 and showed no signs of stopping.
But the past year has given Rodney the chance to “laugh last.” Here’s a chart of the U.S. dollar over the past two years:
As you can see, the dollar found a bottom on May 4, 2011. It tested this support several times over the summer of 2011, but failed to punch through.
Then fall came and the dollar took off. The first move higher was explosive, leaving many to wonder if it was the start of an uptrend or simply the last breath of a dying currency. Rodney didn’t wonder. He knew the dollar was due for long-term gains.
Now, one year since Rodney’s contrarian call, we see the U.S. dollar still building a steady trend higher. “Higher highs and higher lows” are indicative of established upward trends.
Expect the trend of a strong dollar to continue as long as there is turmoil in the global markets. If we ever have a full year that feels just safe and boring… that’s when we’ll worry about the dollar losing value.
For now, that’s the least of our worries.
If you haven’t done so already read the Survive & Prosper issue on “Why Should You Stash Your Strong US Dollars At Everbank?“.