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Currencies , Investing , US Markets
     

Are U.S. Dollar Speculators Woefully Wrong -- Again?

Learn about the behavior of speculators at the start of a protracted trend reversal

by Bob Stokes
Updated: October 04, 2017

Why do investors keep making the same mistakes -- i.e., buying at highs and selling at lows? The answer is that their psychology never changes. If you're an independent thinker, you can potentially benefit from this knowledge. Let's take a look at the U.S. Dollar Index.

 

Why are speculators typically on the WRONG side of major trend reversals? Here's why: Investor psychology is patterned.

A perfect example is how U.S. dollar speculators behaved near the start of 2017 ... and they're repeating that behavior right now. Same mistake -- this time in the opposite direction.

Yet, the U.S. Dollar Index is not the only financial market where speculators have set themselves up for a portfolio punch.

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