Dollar Plunge

Looks like Lacey Hunt was on to something.  10Y Treasuries are rallying and the dollar is dropping like a rock.  World wide markets dropped.  There are many catalysts, though I believe the underlying economics are the root cause:

  • Major Hurricane will strike Florida.  Banks and insurance companies will get hit.
  • North Korea is a source of major uncertainty.
  • Fed has stopped raising.  Next move will be to bring back QE.
  • Debt ceiling was raised.  There will be no serious action on the budget until 2019.

The chart pattern for stocks still looks grim.  As always, I recommend selling half and moving to safety for now.  If I’m wrong, the other half will participate in any rallies, and your safe money will earn 1%.