The dollar is strengthening; the market is wobbly

Ms. Market doesn’t know whether to keel over or not.

She’s been partying for a while and the headache is there, but can she shake it off?

Meanwhile, I think it’s time to look ahead. Risk is shifting again.

Dollar strengthening is inevitable with QE winding down. Everyday inflationary pressures are resulting from dollar inflow and the modest Main Street recovery. Existing dollars will become more dear as the availability of new money diminishes.

Commodity opportunities should arise as the greenback relocates its kung-fu. This week’s Economist also had a good article this week on rising real interest rates. T-bills might soon be fashionable again.

ACC