American consumers start saving with moderation on consumption – bullish for US Dollar
Peter Oberois
Mar. 28, 2008

US Dollar is in a stealth bull market. The sentiment and fundamentals are right. American consumers start saving with moderation on consumption. It is bullish for US Dollar and US economy for the long term.

The 0.1 percent increase in purchases followed a 0.4 percent gain in January, the Commerce Department said today in Washington, matching economists'' projections. The report also showed the Federal Reserve's most closely watched measure of inflation cooled. Meanwhile, the Reuters/University of Michigan index of consumer sentiment fell to a 16-year low.

US Dollar rose on the news. Some analysts were surprised by the strength of US Dollar in spite of 16-year low consumer sentiment.

The bear market in real estate after a classical blow off a few years back is coming to cyclical end within a larger secular bear market. The US Dollar has bottomed and is ready to rise for the next ten years to historic highs. Some commodities especially metals have entered a long term bear market.

The urge to stop spending ruthlessly is the new Washington mantra. The urge to save and prosper is the new American middle class slogan. Both are bullish for US Dollar and equally bearish for Gold and other precious metals.

American consumers start saving with moderation on consumption – bullish for US Dollar
Peter Oberois
US Dollar is in a stealth bull market. The sentiment and fundamentals are right. American consumers start saving with moderation on consumption. It is bullish for US Dollar and US economy for the long term.
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