Any idea of How to play this?

[william the wie]

With the dollar appreciating because the US is the only country in the world without official QE raw material costs will go down. Will revenues decline enough to enough to offset the FOREX edge? And a secondary question is will this revenue encourage investment in Automation to reduce labor costs?

I suspect only a yes/no answer to those questions would create a generally declining market and any other combination would create massive capital flight to here. That would create a one way bet and a bubble.

 

[JakeStarkey]

Yup. And to what does the capital go ?

 

[william the wie]

Yup. And to what does the capital go ?

Real estate and direct investment first to gain legal residency first then it gets strange. Depending on where the capital flight comes from either the drive to automation goes into afterburner or stocks and bonds.

If it goes into automation then US exports decline in price. That will reduce the cost of exports and lead to an exportation of unemployment at all but the lowest level of the food chain.

If it goes into stocks and bonds then a classic stock market bubble will form. The most likely scenario is an alternation of the two forces.