Potential Levels of Future Interest

JC Parets
January 25, 2023

The Dollar was the catalyst all along.

She was always the one.

The strong negative correlation between stocks and the US Dollar has been consistent since 2016.

When the Dollar is weak, stocks rip. End of story.

Look at how well stocks did in the 4th quarter while the US Dollar Index had its first 3 straight months of losses since the end of Covid, which if you recall sparked the greatest 52-week period for returns in the history of the stock market.

I still think it's important to focus on the Dollar, so here are some potential levels of future interest:

I think any trouble that stocks run into this quarter will likely coincide with some Dollar strength.

So I believe these levels are some of the biggest ones.

Ultimately I do think the Dollar breaks the recent lows and heads lower. That will likely be an environment where investors are being rewarded for owning stocks.

How long will it be before the Dollar breaks?

The sooner it happens, the more bullish for stocks.

The longer it remains here, the messier the stock market is likely to be in the meantime.

That's how I see it.

What's on your radar?

Any other "Safe Haven" assets that you think have merit in this environment?

Chime in here.

Let me know what you think!

- JC

What You Need To Know Now

We lay out exactly what we’re looking for in this market, and how we want to profit from it in our latest Live Video Conference Call.

Premium Members can download all the slides and watch the video here as many times as you’d like.

In fact, every live Conference Call since 2015 is archived here. Go back and check the tape.

The one thing you’ll find is consistency.

We have a process. We stick to our plan. We remain disciplined.

Most importantly we ignore the noise.

Just look around. You’ll find many investors focus so much of their attention on arbitrary things like the economy or corporate earnings, that they miss what the market is actually doing.

And since what the market is actually doing is the only thing that pays anyone, that is where our focus is.

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See you in there!

 

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