• The dollar has surged, and this doesn’t look to be over yet.
• In a way, this is good as it spreads US reflation around the world via trade, where it is more needed like in the eurozone and Japan.
• However, one can have too much of a good thing. While the trade connection is largely benign, the financial spillover effects are anything but.
• A further dollar bull run could unleash a truly epic emerging market crisis compared to which the Asian crisis of the mid 1990s was child’s play.
• For now, we suggest to enjoy the ride and buy Japanese shares as the biggest beneficiaries.

A Rampant Dollar Could Crash The World Economy