The US has a plan to beat inflation: by creating more inflation. Official announcement, no joke.
The "Inflation Reduction Act" is a brilliant plan to burn hundreds of billions of US Dollars in order to reduce inflation.
And... it's working...
Wave 1 and 3 are both around the same size at about -25%/-30%, and I believe wave 5 is going to either be of a similar length or be the extended one at -35% or more.
My intuition tells me investors are going to keep being silly (exhibiting or indicative of a lack of common sense) a few months and then things will reverse.
If I am correct according to the IMF and big banks the euro was already undervalued by a double digit percentage at 1.20 and now it's just getting embarassing.
Reasons to believe the euro is worth less:
- Germany (unlike France) hates nuclear, so energy costs weigh on its economy, plus it wants to tax gaz harder and harder
- Little support below parity until ~0.86
- Momentum of a fireball, or a big truck at full speed
- It does not seem like Europe has any plan to fight inflation (yet?)
- The USD will keep going up simply because the world is full of stubborn and risk-averse old people that have done the same thing their whole lives
- I cannot find any reason for it to go up yet, other than it's undervalued (as it has been for years)
No matter how dumb it is, follow the herd!
Definitely short on the Euro, thanks for the money suckas.
The "Inflation Reduction Act" is a brilliant plan to burn hundreds of billions of US Dollars in order to reduce inflation.
And... it's working...
Wave 1 and 3 are both around the same size at about -25%/-30%, and I believe wave 5 is going to either be of a similar length or be the extended one at -35% or more.
My intuition tells me investors are going to keep being silly (exhibiting or indicative of a lack of common sense) a few months and then things will reverse.
If I am correct according to the IMF and big banks the euro was already undervalued by a double digit percentage at 1.20 and now it's just getting embarassing.
Reasons to believe the euro is worth less:
- Germany (unlike France) hates nuclear, so energy costs weigh on its economy, plus it wants to tax gaz harder and harder
- Little support below parity until ~0.86
- Momentum of a fireball, or a big truck at full speed
- It does not seem like Europe has any plan to fight inflation (yet?)
- The USD will keep going up simply because the world is full of stubborn and risk-averse old people that have done the same thing their whole lives
- I cannot find any reason for it to go up yet, other than it's undervalued (as it has been for years)
No matter how dumb it is, follow the herd!
Definitely short on the Euro, thanks for the money suckas.