By Richard Russell
The markets are prescient and not often shocked. But over the last few days we’ve seen a shock that has had an effect on almost all markets. The US dollar has been on a tear for weeks, and recently it has become overbought to an extent that I have never seen before. As a result, the dollar is tumbling against most currencies, particularly against the lowly euro.
In another area, the Fed has boxed itself into a difficult situation. The Fed has all but promised the world that the US economy is improving, almost month by month. On this promise the Fed is expected to raise short rates. But my feeling is that the US economy is not nearly as buoyant as the Fed would have us believe. Therefore it would not surprise me to see the first Fed interest rate boost appear, not in 2015, but in 2016. And ... Log in or subscribe to continue reading.