> Measures by the Fed and U.S. government have underpinned the recent rally across markets. The Fed made it clear it was willing to step in to buoy the economy.

> Measures by the Fed and U.S. government have underpinned the recent rally across markets. The Fed made it clear it was willing to step in to buoy the economy. Why bet against the market when the central bank is willing to do that? The Fed has gone far further than just this. The Fed is going to buy as many assets as it takes. Treasuries. Corporate bonds. Junk bonds. Munis. It'll buy the assets directly. It'll buy them through ETFs. The Fed will buy so much with its infinite balance sheet that you're going to get tired of getting rich by front-running the Fed. The Fed is in the fight of its life. The enemy is dollar strength. Have a look at what the dollar was doing during the depths of the recent crash. It was going much higher. Here's an investment hypothesis. It could be wrong, but for now, it explains some things. Should the dollar start climbing above 100 on the DXY index[1], watch for: falling stock markets; falling bond markets; falling commodities and gold markets; falling bitcoin; failing businesses; bank distress. At the same time, watch for the Fed to announce new asset purchase acronyms. The dollar is the world's currency and the Fed is the world's banker. There's a lot of dollar-denominated debt offshore. When the dollar strengthens, those loans get more expensive to service. To raise cash, foreign holders of stocks and bonds start selling.[2] The US stock markets have become strongly coupled to the US dollar and simultaneously a predictor of Fed action. Dollar goes up, stocks go down, Fed starts buying assets. Dollar goes down, stocks go up, Fed steps back. The thing to watch for in the coming months is some kind of dilemma. For example, watch for Fed purchases to lead to a stronger dollar. At that point, the Fed will need to decide which master to serve. [1] https://www.tradingview.com/symbols/TVC-DXY/ https://www.tradingview.com/symbols/TVC-DXY/ [2] https://www.lynalden.com/global-dollar-short-squeeze/ https://www.lynalden.com/global-dollar-short-squeeze/