The fx euphoria will die down eventually so I accumulate and patiently hold. Although a strong dollar invested in emerging markets is the likelihood of the eu and us raising rates. The question is if the transition will get people off guard. Will the transition catch the majority out? Will funds get stopped out? Will derivatives get stopped out? Or will the cb s of the us and eu give up and play qe ping pong at the expense of debt? The us has already pulled back government spending. Although they still regularly hold treasury auctions. Dudleys speech indicates that rates will rise this year. It is a bit like the boy who cried wolf. Fischer said too much emphasis is being placed on the first rate rise. I think so too. The real damage is yet to come and thats why I patiently hold.
