What the Dollar Means for ‘Risk Assets’ in 2012
Like a good trader, Serge wasn’t content just looking in the rear-view mirror. Serge focused on profit potential in the new year by offering up this second chart about the dollar index.
“The story this year has been the continued inverse relationship between the dollar and risk assets,” Serge writes. “After selling off in the early part of the year, the dollar has overcome significant headwinds and showed resilient strength that looks promising for further continuation upward. The dollar has gone nowhere in 2011 if we look where it was in January and where it is today, but the intrayear improvement has been remarkable. The dollar served as the ultimate clue to risk assets all year.”
Check out InvestorPlace.com’s other looks back at 2011 and ahead to 2012 here.