While Hillary Clinton supporters continue to drown in their sorrows while claiming she really beat Trump under an electoral system that does not and has never existed in the United States, the rest of the country has moved on and it shows: New and growing confidence in our future is driving the U.S. dollar to new heights.
As reported by The Wall Street Journal, the rising dollar has become perhaps the most visible sign of growing confidence in our future, with Wall Street and Main Street both believing that President-elect Donald J. Trump will truly “Make America Great Again.”
WSJ reported further:
Most analysts expect the U.S. currency to strengthen in 2017, extending a gain that has boosted the value of the dollar by more than one-third since the U.S. credit downgrade in 2011.
That expectation is mostly because a strengthening economy appears likely to enable the Federal Reserve to enact its plan for multiple rate increases in 2017. Higher rates make it more attractive to hold dollar-denominated assets, attracting money into the U.S.
“Right now, there is an incredible amount of pressure to sell just about every type of currency and buy the dollar,” said Christopher Stanton, chief investment officer at Sunrise Capital LP, which manages $700 million.
The paper expends many more words to explain why the dollar is rising, how it will benefit U.S. consumers and hurt some governments overseas as their exports become less competitive. The paper doesn’t mention Trump once in its report, which is disingenuous at best, since this wave of enthusiasm can be directly tied to Trump’s unexpected Nov. 8 victory.
But no matter what, the confidence is returning in America and regardless of the reason, it will result in much better times for all of us in the months and years ahead, a good thing.