The U.S. dollar, at its highest level in nine years, is about to fall off its perch.
The decline will catch most investors by surprise and create sudden reversals in oil, coal and emerging market stocks. You can profit from this if you act now and buy those sectors — and bet against dollar.
That’s the outlook, at least, of Lawrence G. McDonald, a market strategist who has a knack for spotting trouble ahead in markets. McDonald says in his New York Times best-seller, “A Colossal Failure of Common Sense,” that he warned colleagues at Lehman Brothers of the coming subprime storm and how it might hurt the investment bank.
To profit from those moves, consider these exchange traded funds. Get long the euro via CurrencyShares Euro FXE, -0.57% as a bet against the dollar. Get exposure to oil and coal via United States Oil ETF USO, +0.66% United States Brent Oil BNO, +0.25% and Market Vectors Coal KOL, +0.78% And buy emerging markets via iShares MSCI Emerging Markets EEM, +1.21% All of these ETFs should do well as the dollar weakens, says McDonald, who is now the head of U.S. macro strategy at Newedge.
Why is the dollar about to fall? Because that’s what the Federal Reserve wants since the strong dollar is starting to create problems in debt markets that hurt U.S. growth, McDonald maintains. The euro has fallen more than 14% versus the dollar since March.
http://www.marketwatch.com/story/the-dollar-on-a-hurricane-path-of-destruction-may-be-about-to-fall-2015-01-07?siteid=yhoof2
The decline will catch most investors by surprise and create sudden reversals in oil, coal and emerging market stocks. You can profit from this if you act now and buy those sectors — and bet against dollar.
That’s the outlook, at least, of Lawrence G. McDonald, a market strategist who has a knack for spotting trouble ahead in markets. McDonald says in his New York Times best-seller, “A Colossal Failure of Common Sense,” that he warned colleagues at Lehman Brothers of the coming subprime storm and how it might hurt the investment bank.
To profit from those moves, consider these exchange traded funds. Get long the euro via CurrencyShares Euro FXE, -0.57% as a bet against the dollar. Get exposure to oil and coal via United States Oil ETF USO, +0.66% United States Brent Oil BNO, +0.25% and Market Vectors Coal KOL, +0.78% And buy emerging markets via iShares MSCI Emerging Markets EEM, +1.21% All of these ETFs should do well as the dollar weakens, says McDonald, who is now the head of U.S. macro strategy at Newedge.
Why is the dollar about to fall? Because that’s what the Federal Reserve wants since the strong dollar is starting to create problems in debt markets that hurt U.S. growth, McDonald maintains. The euro has fallen more than 14% versus the dollar since March.
http://www.marketwatch.com/story/the-dollar-on-a-hurricane-path-of-destruction-may-be-about-to-fall-2015-01-07?siteid=yhoof2
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