A. I believe so.
- Economy is rebounding (even though employment is lagging). Rates are firmer…for stocks, the best of all worlds…better consumption of goods and services with a Fed that is miles away from shifting into inflation-fighter mode…
- For dollar, real, inflation adjusted yields are rising outright and in comparison to major rivals…So, yes, I think there has been somewhat of a fundamental shift.
- There has also been an outflow from emerging markets into developed markets as inflation takes flight in those markets to a much greater degree than the major economies.
All dollar supportive in a macro sense…