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Below is a brief excerpt transcribed from Thursday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough. |
Let’s talk about the US Dollar and Commodities.
The Fed and the fiscal (that's the Mnuchin with the big checks) are going to be completely politically compromised and conflicted ahead of the election.
That ensures that the dollar is going to go down. We are currently positioned for the devaluation of the dollar. It’s unfortunate for all of you that get paid in dollars. The purchasing power of what you are going to buy with those dollars is going to go down.
The prices of those things go up in dollars and that’s the point on Commodities this morning.
Check out the broad based breakout yesterday in Corn on this chart!
Not everyone is long corn, but we sure are. I don’t know about you but this chart doesn’t look like deflation.
To do things the way that we do it, you don’t have to worry about what the Old Wall does. What they do, helps us do what WE do. Someone has to be on the other side of the trade.
Whether it’s the bullish breakout signal in Copper, Soybeans, Corn, or even Oil (which has been bullish trend), these Commodities are coming off a major cycle low because we are coming out of a major Quad 4 cycle high in the US Dollar.
Just continue to play the game our way in the midst of FOMO and panic.
