Mike “Mish” Shedlock's
Sitka Pacific Capital Management,Llc
Economist David Rosenberg expects the US dollar to fall. His Recommendation is to buy commodities.
That image of the dollar index is relative to June 2001. This is the chart I use.
Technically Speaking
Technically speaking there is no support until 80 or so. That appears tobe what Rosenberg is talking about.
Fundamentally Speaking
I believe rate hikes are priced in that will not happen. Moreover, the US deficit is out of control and worsening.
Then again the ECB has rat hike and tapering priced in that are also unlikely.
Unlike Rosenberg, I suggest: Forget oil, buy gold.
Why?
Oil is an industrial commodity and the global economy is weakening. We may be in late stage inflation similar to the surge that tool oil to $140 in 2008.
Globally, if central banks fail to meet hiking expectations, gold rates to be a beneficiary regardless of what the economy does.
This material is based upon information that Sitka Pacific Capital Management considers reliable and endeavors to keep current, Sitka Pacific Capital Management does not assure that this material is accurate, current or complete, and it should not be relied upon as such.
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