The reflation trade. We hear about it quite often as that force which has driven cyclicals higher and defensive sectors lower. It has been accompanied by the long dollar (UUP) and short Treasury (TBT) trade as the "reflation" and subsequent growth drive this pairs trade.
Good times, right? Here's the thing: one thing I have learned over time is that when everyone is on the same side of the boat, eventually it will take on water. Keep your eyes open and watch the water for signs it's time to get to the other side of the boat.
As long dollar is part of the bigger pairs trade, let's take a look at the dollar.
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