The weakness in the US Dollar over the past couple of quarters comes as no surprise to us.

The journalists nailed it again.

What else is new?

But here’s what really has surprised me.

If you would have told me in September that the Dollar would fall apart over the next 2 quarters, I would have told you that precious metals are likely doing well in that environment. I would have also said that Silver would outperform Gold during that period.

In this case I would have been absolutely right.

Great.

But what I would have also been confident about is foreign equities doing well in that weaker Dollar environment.

And while I would have also been correct in that guess, I would have definitely told you that it would be Emerging Markets outperforming, not Developed Markets.

And that would have been very wrong.

It’s been the Developed Markets outside the U.S. that have been dominating the equities markets over the past couple of quarters. Look at the performance of these assets since the Dollar peaked: [Read more…]