Let's get right to it. This is the most important chart you will see today. Quite possibly the most important chart you will see this month.
US Dollar Index:
A consequential breakdown is an understatement. This is one of the more significant technical developments of the past many months. What the US Dollar is telling us today, in no uncertain terms, is that the inflation/higher rate regime is over.
The US Dollar was the last piece of the macro puzzle that needed to fall into place and it has today, in somewhat stunning fashion.
The upward trending channel that remained intact until today from the beginning of the year is extremely clear. With that upward trending channel came all types of chaos and difficulties for most major equity classes.
Now with a break of this upward trending channel comes an entirely new set of asset allocation rules for the remainder of 2022.
Think back to 2020-2021 when the US Dollar was in a downtrend, rates were moving down and commodity prices were falling.
We are about to see an identical pattern emerge of investors moving back into high growth, with the only alteration being that we are now deeper in the secular bull market cycle. This means more upside volatility, with the potential for greater gains over a much shorter time frame.
Continue to expect fireworks on the upside for some months to come.
Disclaimer
This website is for informational purposes only and does not constitute a complete description of our investment advisory services. No information contained on this website constitutes investment advice.
This website should not be considered a solicitation, offer or recommendation for the purchase or sale of any securities or other financial products and services discussed herein. Viewers of this website will not be considered clients of T11 Capital Management LLC just by virtue of access to this website.
T11 Capital Management LLC only conducts business in jurisdictions where licensed, registered, or where an applicable registration exemption or exclusion exists. Information contained herein is not intended for persons in any jurisdiction where such distribution or use would be contrary to the laws or regulations of that jurisdiction, or which would subject T11 Capital Management LLC to any unintended registration requirements. Visitors to this site should not construe any discussion or information contained herein as personalized advice from T11 Capital Management LLC. Visitors should discuss the personal applicability of the specific products, services, strategies, or issues posted herein with a professional advisor of his or her choosing.
Information throughout this site, whether stock quotes, charts, articles, or any other statement or statements regarding capital markets or other financial information, is obtained from sources which we, and our suppliers believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. Neither our information providers nor we shall be liable for any errors or inaccuracies, regardless of cause, or the lack of timeliness of, or for any delay or interruption in, the transmission thereof to the user. With respect to information regarding financial performance, nothing on this website should be interpreted as a statement or implication that past results are an indication of future performance.
