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Below is a brief excerpt transcribed from Monday's edition of The Macro Show hosted by Hedgeye CEO Keith McCullough. |
The U.S. Dollar has been down for 4 straight weeks.
Now everybody on Wall Street is short it. Just look at the net short position in the dollar. It’s the most consensus in Macro.
At the same time you get the ballooning inverse correlations to the U.S. Dollar.
This is just about as high as these inverse correlations can get. Obviously, it can get to 0.99, but rarely.
You just have to be aware.
We’re long Gold, Commodities, Tech, and multiple things that could be at the top end of their range at any given time.
When that happens you sell some because, as Wall Street crowds into shorting the Dollar, all you need to have is another U.S. Dollar up day and all of that stuff is going to come down again.
Think about that as the Fed continues to devalue the dollar and the fiscal spenders are saying “Why don’t we give people another $500 a week until the election.” Nobody seems to care about the deficit.
What could possibly go wrong?
