Sometimes it helps to look at the big picture. Yet the big picture of the U.S. Dollar Index is no comfort to the bulls. Take a look …
The dollar hit new lows for the year. While nothing travels in a straight line, the US Dollar Index appears to be on track to test its lows of around 70.70. Momentum, as tracked by RSI, is very bearish, and is not overbought. That clears the way for a potential retest of the lows.
The greenback isn’t getting any help from the spendthrifts in Washington. The federal deficit rose by $111.4 billion in August to a record high of $1.378 trillion with one month still to go in the current fiscal year, the Treasury Department announced last week.
The government in August took in $145 billion in receipts, but $256 billion in outlays led to an overall monthly deficit of $111 billion.
The sad thing is that deficit number is better than anticipated – most expectations were that the government had added $162 billion to its tab last month.
My target on the U.S. dollar Index remains 69. After that, we’ll see.
And yes, I expect the dollar’s decline should help gold go higher. Again, nothing goes in a straight line. On a shorter-term (daily) basis, the U.S. dollar Index is oversold.
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I currently have a 401k wich is only 12000.00 because I had heard that there was a coming financial crisis about two years ago so I discontinued contributing to it and not to long after so did the company stop matching contributions They are talking of starting matching contributions again but my desire is to see how to get whats left in the account out so as to buy some gold or silver since there isn’t any solid investments
I am trustor of an eccliastical common law trust that purchaased a few hundred shares of UDN. But I doubt the increased value of the shares will keep up with the decline in purchasing power as the dollar and pound fall. Yet, for those who cannot invest overseas (in non dollar denominated investments), it ought to be mitigating.
I also have a universal life insurance policy I recently discovered was basically a fraud and am canceling to recover about $45,000 before that is lost to policy mortality insurance funding paid fromn the investment side. I would, after learning more, encourage anyone with a universal life to review the policy, pull the plug and get back to a boring but guaranteed whole life policy or term if you are convinced you can invest to outperform everyone else. My dilemma is determining whether the safety of wholelife dividends in the future (that I can borrow from in old age to maintain quality of life-albeit at a decreased buying power) is a smarter investment than moving that $45K to investments outside the country. Any thoughts?
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