Friday, October 14, 2022

Is the Dollar Invincible?

From time to time on this blog I offer some sane and sensible advice about the markets. What makes it sane and sensible is that it most often is not coming from me. I make no claim to anything resembling expertise in market gyrations, but I have done fairly well in choosing whose advice to follow.

Recall, you may not be happy to do so, that I reported that Bitcoin was a bubble when it was some forty thousand points higher than it is today. Not a bad call at all. And keep in mind the people I found who were cautioning against trying to trade the current bear market.

Today’s peek into my crystal ball tells me that the United States dollar, the foundation of our prosperity and influence, is in serious trouble. How do we know? Simply, Bloomberg Businessweek sports  cover declaring that nothing can stop the rise of the dollar. 

Savvy market professionals consider that to be a bad omen. Perhaps not for tomorrow, but surely the end is nigh.

John Hathaway of the Sprott Gold Report says this:

The kiss of death for the strong USD may well have been delivered by the Bloomberg Businessweek cover below. Overcrowded consensus trades are often top-ticked by magazine covers, a long-standing media tradition in keeping with Business Week’s "Death of Equities" cover in 1979.

Hathaway seems to be a gold bug-- bless him-- but if contrary sentiment serves any purpose, the negativity surrounding gold seems to be the inverse of the positive sentiment surrounding the dollar. This means, sell the dollar and buy gold.

There, that was easy, wasn’t it?

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