Profits from trading currency trends. At present, though, after you read my following prediction, if you still want to invest in foreign currencies, I am not going to tell you not to do so, but be prepared to learn a few painful lessons. The world economy needs a stronger dollar and I believe the dollar will be surprisingly strong, perhaps for the next year or more. Yes, I realize that a lot of experts strongly disagree with me. They argue that our huge and growing trade deficit will bring the dollar down.
Currency markets are the single most powerful economic force today.
We saw that in 1997, when the currencies of Southeast Asia collapsed. We have seen it many times in the past. For example, in 1984, a soaring dollar forced the Federal Reserve to reverse its course and cut U.S. interest rates. If there were any doubt, the market action in late September certainly removed it. The U.S. government announced July trade figures, and the stock market plunged 500 points September 21-23.