Many of us tune out such talk; after all, there have been many such forecasts in the past. Yet the long bond-dollar anomaly suggests this time really may be different. It’s certainly an issue worth another look.
There’s a fair consensus that the reason for the foreign investors’ reassessment is U.S. policy changes. Start with tariffs.
The dollar had been strong when President Donald Trump was elected — “All Bow Before the Almighty US Dollar” was the headline on a DTN piece of mine last December (https://www.dtnpf.com/…) — and it strengthened further through mid-January (https://www.dtnpf.com/…). The greenback began its downward trend once investors realized he was serious about big tariffs, which investors see…
