Weekly Wrap Up

Broad market strength kept the trade afloat at the beginning of the week. Since the AUDUSD jumped out of the gate on Sunday afternoon, not much steam was left for during the week.

Yesterday was a temporary scare in my opinion. People are wary of any signs of overextension, and rightfully so after the GFC last year.

The problem with looking through last years 'lens' as far as valuations are concerned is that it's a stale view. Yes, it may seem alarming that asset prices are seemingly sprinting back to pre-crisis levels, but they're doing this on the back of a steadily declining dollar.

10,000 on the DOW is not the same as the last time we reached that level... The amount of Dollars that have been injected into the economy, and more importantly STILL being injected into the economy with no plan to rest for months to come will continue to provide tailwinds to risk appetite.

I'm in no way an expert, but I don't think it takes a rocket scientist to see that the good ol' greenback people swapped their assets for last year, is by no means the same greenback you'll get if you decide to do the same today...

Have a great weekend!