How To Position For A USD Collapse
Phoenix Capital Research | Aug 30, 2017 11:44AM ET
As we’ve been saying, the drop in USD is the single-most important development in the financial world today. But the currency has been dropping like a brick in 2017 and has now taken out critical support.
This doesn’t mean that USD will go straight down. In truth, we’re due for a small bounce, but the big picture for the greenback is UGLY. The long-term chart indicates we’re going to the mid-to-low 80s in the next 12 months.
As you can see, the dollar broke out of a massive 40-year falling wedge pattern. This initial breakout has failed to reach its ultimate target (120) and is now rolling over for a retest of the upper trendline in the mid-to-low 80s.
Put simply, this chart is telling us that the USD is going to collapse in the coming months.
The implications of this are going to be tremendous for the financial system. US corporate profits will be increasing, particularly for large multi-national companies. Emerging-markets will outperform.
And most importantly, the USD’s collapse will act as rocket fuel for inflation trades. Smart investors will use this trend to make literal fortunes.
If you’re not taking steps to actively profit from this, it’s time to get a move on.
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