We should expect a stronger dollar as all of the winds are blowing that way. But this is the key point: even given that, the dollar’s value is still within the historical range. Even as all the stars align, the dollar is still under control. So, the economic and market effects are still ones we have seen before.
Time To Panic?
That is why I am not worried now any more than I was two years ago. The dollar wasn’t collapsing then, and it is not taking off for the stars now. In both cases, it has been responding to very real economic and political constraints, but it’s doing so in a rational way. Time to panic? Not at all. Keep calm and carry on.
Brad McMillan is chief investment officer for Commonwealth Financial Network.