Rosenberg Says Buy Gold, Buy Oil, Buy Commodities
Mike (Mish) Shedlock | Apr 17, 2018 12:45AM ET
Economist David Rosenberg expects the US dollar to fall. His Recommendation is to buy commodities.
That image of the dollar index is relative to June 2001. This is the chart I use.
Technically Speaking
Technically speaking, there is no support until 80 or so. That appears to be what Rosenberg is talking about.
Fundamentally Speaking
I believe rate hikes are priced in and that will not happen. Moreover, the US deficit is out of control and worsening.
Then again the ECB has rate hikes and tapering priced in which are also unlikely.
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Unlike Rosenberg, I suggest: Forget oil, buy gold.
Why?
Oil is an industrial commodity and the global economy is weakening. We may be in late stage inflation similar to the surge that took oil to $140 in 2008.
Globally, if central banks fail to meet hiking expectations, gold rates will be a beneficiary regardless what the economy does.
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