The Dollar Teddy Bear Market

Every week, as I sit down to write, I think about the scores of research reports and articles I have read in the past few weeks. Is there a new theme? What trend is developing? What is the picture coming into view from the pieces of the puzzle at which I get to look? What have I seen that I should bring to your attention?

Usually one or two things jump out, and this week is no exception. A number of articles, all about the dollar, and when taken in concert, are beginning to concern me. The developments in the dollar are the most serious threat to my view of a Muddle Through Economy and Market. This is important for you to understand, as it could have a profound affect upon your investments. We will look at these in depth.

But first, I want to briefly give you the highlights of the keynote address at the Hedge Fund Forum this last week. I think it will give you food for serious thought.

Rob Arnott of First Quadrant presented a sobering picture of the future of investments and retirement. A well-known writer, researcher and hedge fund manager, Arnott impressed a rather jaded audience of hedge fund managers with his first rate analysis.

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