The New Normal

Since the August 24 rally high, the US Dollar Index is down 7% to the low so far today. For the same period the cash gold quote is up 10.8%. Of course you'd have to have nearly all your assets in gold to be ahead of the smooooooosh in dollars. Most people don't.

At the same time most investors face diminished total return expectations in mini-dollars. Here are some fairly short but pertinent additions to the analysis of this issue:

http://www.pimco.com/Pages/StanDruckenmillerisLeaving.aspx

http://www.pimco.com/Pages/PaulMcCulleyDiscussesPIMCO%e2%80%99sCyclicalOutlookOctober2010.aspx

http://www.arpllp.com/core_files/The_Absolute_Return_Letter_1010.pdf