U.S. dollar will appreciate, predicts Kennesaw State economist (Detroit Free Press)
Gold vs. everybody: How strength in the yellow metal is defying conventional wisdom
KENNESAW, Ga. (Feb 24, 2017) — Much of what has happened in the U.S. stock market so far in 2017 is relatively easy to explain. Investors see President Donald Trump’s policies of deregulation and lower corporate taxes as rocket fuel for U.S. business, and the stock market has certainly reflected that optimism since Election Day. The S&P 500 is up more than 10% since the election.
At the same time, Trump’s protectionist rhetoric will likely continue to keep the U.S. dollar strong relative to international currencies.
“Largely, the USD will appreciate because U.S. protectionism will cause economic weakness overseas and underscore the importance of the U.S. as the safe harbor for investment,” said Kennesaw State University associate professor of economics Mikhail Melnik.