Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
Where do Commodities, in Devalued Dollars, go from here?
A) Higher… and
Obviously our Full Cycle Investing position is considering the longest of “long-term” durations when considering the big Asset Allocation pivots (like going from #Quad4 Deflation to #Quad2 Inflation Accelerating) of the long-term Cycle.
But even the longest-term investors want to know something about the immediate-term…
On my immediate-term TRADE duration:
A) US Dollar Index has an inverse correlation to Commodities (CRB Index) of -0.86
In other words, get the Dollar right, and you’ll keep getting stocks and commodities right (especially Commodity Stocks!).