Dow in Euros

DJEUR-W 8-24-2015


Mr. Armstrong;

In Munich, you said the US share market had peaked in euros and the low looked to be in August. Is that view still on track?


ANSWER: Yes. When you plot the Dow in euros, the high was March, not May, as it was in dollars. This suggested that August would be a five-month correction in euros, but perhaps a three-month FALSE MOVE in dollar terms. This was linked to the decline in commodities, which of course would spark repatriation by Europeans from emerging markets where they have been heavy investors in commodity production.