At half a percent, that's still the cheapest funding in the world. |
Everything is trading off equities now. European investors are buying less U.S. assets and it's enough to put pressure on the dollar because of the current account deficit. |
Interestingly the BOJ hasn't intervened where it last intervened and that confirms our view that they haven't drawn a line in the sand and they want to slow the pace of appreciation. |
The market has overreacted, and we still think the Fed's going to keep going to 5 percent next year. Plus, we don't believe the ECB will raise rates very dramatically, and nothing like the Fed. |
The U.S. economy will continue to cruise along at a good speed so there's still going to be another two rate increases. We're dollar bulls and we're looking for opportunities to buy the dollar. |