Oooh Baby I Love Your Way

JC Parets
December 22, 2022

I don't know how many times I've said it this year. Someone go back and count.

But the catalyst IS THE WEAKER DOLLAR.

It's not the fed, or the election, or yield curves, or wars, or Santa Claus or any of the other random arguments that we've all heard along the way.

It's the US Dollar.

Period.

Until the market proves that to no longer be true, we're sticking with it.

One day that negative correlation between the US Dollar and risk assets will most likely no longer be in place.

That day has NOT come.

So the question isn't whether or not certain assets benefit from a weaker dollar. The more important question to ask is, Which assets benefit the most?

Here's an updated performance chart going back to September 26th, when the internals of the US Dollar began to weaken:

The answer to who loves it the most continues to be Silver. After that it's EFA, which represents developed countries outside of North America.

Then it's US Stocks, Gold and Emerging Markets.

So as you can see, a lot of these assets are singing that old Big Mountain song about the US Dollar. And now I can't get that song out of my head.

This Dollar weakness has been a big theme for us. Yesterday we went over the performance of all the U.S. sectors since the stock market bottomed in mid-June. That was over 6 months ago.

The catalyst moving forward is a weaker US Dollar. I see no reason why it's not.

So what are we buying here? Which stocks and ETFs are the best ones to own heading into 2023?

We discussed it all LIVE Tuesday night on our Mid-month Conference Call. In this video is everything you need to know. The list of stocks we're buying is included in there as well - with risk management details and profit targets.

Premium Members can watch the replay here and download all the slides.

If you can't access the replay for whatever reason, just email me or give Mary a buzz: +1 (323) 421-7910. She's way nicer than I am anyway.

 

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