So Who Is Your Daddy?
Well I will gloat a little as I was right yet again. I told you that the Dollar was set to fall along with the USD/CHF and USD/YEN. It was clearly written "here" a few weeks ago when I told you clearly what to do. Just out of curiosity did anyone else tell you this?
Nope. Not one big shot analyst called it.
It does not mean that the Dollar bull is over yet. Oh no, not by a long shot. However it is over in the mid term.
Now what I want you to note is how useless fundamental and technical analysis is in these times. That and correlating markets in the past. None of them would have warned you about this. Oh sure you will hear all sorts of excuses about this and that by the fundamental crowd but low and behold they were all wrong. Big time.
You can see from the charts below that I nailed it once again. From the top which is not an easy thing to do at any time.
One of the key things I want you to note is that stocks did not accompany the Dollar lower. They won't. People are still bickering about the market is overbought and stocks are over valued. Not really. Not if you adjust for inflationary effects over the years. However here is the big part. The markets won't tank because this is where the QE is still going. Into stocks. The markets still should rise quite a bit more before leveling off. In the USA real estate too is just getting started folks. You will likely see prices a LOT higher in the next three years.
In the past this would have been a prime time to short stocks as everyone is "all in" except how do you time something that is NOT allowed to collapse? Well the short answer is, "You can't". People say the Fed can't prop it up forever. Why not? It has unlimited resources at its finger tips. A lot more than any of these hedge funds. So why not?
What amazes me is people continue to shout from the roof tops instead of learning from their mistakes. I made that mistake too. I made it back in 2010, not year after year. I realized then that shorting this monster was NOT a good idea. Fundamentals were out the window. That does not mean that you won't get a 10-20% correction at some point but that is a time to buy, not sell.
If Trump starts a war (and he might) then all bets are off. However for the interim I am bullish.
Nope. Not one big shot analyst called it.
It does not mean that the Dollar bull is over yet. Oh no, not by a long shot. However it is over in the mid term.
Now what I want you to note is how useless fundamental and technical analysis is in these times. That and correlating markets in the past. None of them would have warned you about this. Oh sure you will hear all sorts of excuses about this and that by the fundamental crowd but low and behold they were all wrong. Big time.
You can see from the charts below that I nailed it once again. From the top which is not an easy thing to do at any time.
One of the key things I want you to note is that stocks did not accompany the Dollar lower. They won't. People are still bickering about the market is overbought and stocks are over valued. Not really. Not if you adjust for inflationary effects over the years. However here is the big part. The markets won't tank because this is where the QE is still going. Into stocks. The markets still should rise quite a bit more before leveling off. In the USA real estate too is just getting started folks. You will likely see prices a LOT higher in the next three years.
In the past this would have been a prime time to short stocks as everyone is "all in" except how do you time something that is NOT allowed to collapse? Well the short answer is, "You can't". People say the Fed can't prop it up forever. Why not? It has unlimited resources at its finger tips. A lot more than any of these hedge funds. So why not?
What amazes me is people continue to shout from the roof tops instead of learning from their mistakes. I made that mistake too. I made it back in 2010, not year after year. I realized then that shorting this monster was NOT a good idea. Fundamentals were out the window. That does not mean that you won't get a 10-20% correction at some point but that is a time to buy, not sell.
If Trump starts a war (and he might) then all bets are off. However for the interim I am bullish.
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