The Dollar

Recent articles express fear for the strength of the US dollar. A particularly well written essay draws the analogy to the steel in the twin towers of the World Trade Center Building weakening under the heat of the fire.

Opinion: The fear fails to take into account the technology growth in this economy or the weakness of European fundamentals. Fear for the dollar is not new, especially with regard to the deficits. Past attempts to short the dollar, have also met with disastrous results for the speculator. From time to time such articles seem financially or politically motivated. I would be suspicious.

When the issue of the dollar reaches the local coffee shop round table, it may in fact be a time to buy the dollar. In fact one of those present, just six months ago said, "What ever you do, don't buy Apple. Everyone is switching to the PC." I note that the original IBM PC is sold to China? No details, I can hardly believe it, and HP directors are contemplating a breakup. --- I would be a contrarion on the dollar. I guess if one were worried about the imminent demise of the dollar one might buy the Chinese tech company that bought the IBM PC Division, with the expectation that the Yen will soon be allowed to float --- cynical comment.