As the dollar falls, all other investment assets have been going up – including gold, oil and even equities – here’s how to get your share…
Readers of Crisis Trader have had a heck of a good year. I made, what was to me, an obvious call last fall when the dollar surged on a flight to safety. My average trade has gone up 59% with a 703% cumulative gain – with readers banking 138%, 89%, 103%, 114%, and 141%, to name a few…
Last December, even a blind monkey could see that the U.S. dollar was going down. It’s a piece of paper backed by a spendthrift country mired in a credit debacle and encumbered with a heart-stopping loss of GDP growth…
The current leadership couldn’t support a strong dollar if it wanted to – and it doesn’t want to. The goal of the Fed and Treasury is to inflate away the debt by printing more dollars.
Need More Money? Here’s $23 Trillion! Will That Cover It?
But don’t let it get you down – at the rate the printing presses are humming, we’ll all be millionaires soon.
The best part is that during the first half of this year investors drove the value of the dollar up because they thought it was “safe.” I can’t get enough of this stuff…
Here’s Barron’s take on it:
The U.S. Dollar Index, which tracks the dollar against other major currencies, fell below its important June low of 78.33 late last week. On Monday morning, it was trading at an 11-month low. The bear trend from March continues with no meaningful support in sight. Roughly two years ago, when the dollar was in its previous bear market run, the dollar index had moved under a multidecade support level at 80 (see Chart 1). At the time, the subprime-mortgage crisis was just unfolding.
After reaching a low near 71, the dollar spent several months moving sideways until July 2008. Although still several weeks before the stock market started its slow motion crash in September, fear had gripped the world's financial markets. Stocks and corporate bonds were spiraling lower. But it was just then that the dollar began to rise sharply. Money was moving to the perceived safety of U.S. Treasuries and that sparked the demand for dollars.
When the dollar index moved back above 80, chart watchers with a long-term bent declared a breakdown failure and the technical resurgence of the greenback. Although volatility was huge, the index remained above the 79-80 zone to set up a floor of support. As of Monday, that floor is broken.
It’s one thing to have a falling dollar; it’s another to profit from it. And that’s what I do.
Remember back from 2000 to 2007 when Greenspan was inflating the bubble to save us from the dot-com bubble, which he created to save us from the Asian contagion bubble?
Well, over that five-year period every asset class went up because it was a liquidity-fueled bubble. Well, now we are on bubble number four and for liquidity we’ve jumped from gasoline to napalm – whoosh…
And I found this bit from Art Cashin, quoted by CNBC:
Dollar Hits New Low For 2009. S&P Makes New High For 2009, Duh!
While economic data continues to come in “less bad,” many traders are pointing to the inverse relationship of the dollar to the market as the influence for movement.
There is speculation among brokers that a “dollar carry trade” may be evolving. For decades, arbitrageurs would borrow money in Tokyo at zero percent and short the yen. They would then take the “free money” and buy commodities, crude, high yielding bonds and even stocks. With U.S. rates held at zero for months, traders wonder if an American version of the “carry trade” is beginning to evolve.”
Of course it is! (I’ve just put out the perfect trade on that as well.)
There is only one thing to do – buy hard assets like gold and gold stocks. I have a number of them that are doing quite well.
Gold is at $970 today and pushing the critical market of $1,000. When that dam breaks, we are on a one-way trip to $2,000. You don’t want to miss it.
The second profit train is oil. But not the big U.S. producers, no… You want small international players that are sitting on trillions in reserves. China is on a spending spree and is buying these little guys up like crazy. The Chinese don’t want dollars either… Here are the ones to buy.
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