Don’t look now, the dollar has been trending lower for a few months now. Interestingly enough, the gains in the dollar coincided with the bottoming out in oil. The interest rate complex has shifted, as yields race higher and the curve widens. It’s the polar opposite of what we’ve seen in the market for the past 6 months. Hardly anyone I know believes it will last. But what if it does?
Is there anyone out there suggesting oil is back and the dollar is heading straight to the sewer pipes?
How about copper bulls? Anyone?
Iron and steel players? No?
Or, how about gold and silver bugs? I know some of you doom and gloomers are still stockpiling that shit in your bloomers. But, for the most part, the investment community has given up on the trade.
I am tossing a lot of questions out there, addressing an idiot reader class. I apologize for inserting additional pressures into your daily monotony. It’s bad enough you need to figure out how to boil a cup of soup, or melt cheese atop your elbow’d macaronis.
I am going to play The Devil here tonight and put together a basket of commodity related stocks for you, names that may benefit from the drop in the dollar and a return to sweet glorious 1970’s American styled inflation.
Copper: FCX
Gold: ABX
Oil: PDCE
Industrial Metals: TCK
Oil Exploration: CLR
Oil Equipment: NOV
Chemicals: WLK
Steel/Iron: VALE
Machinery: JOY
Those stocks, for the most part, are the best of the best in their respective industries. When buying distressed sectors, you really want to stick to the bigger names, otherwise if you’re wrong you’ll get clown raped on a downturn. The above stocks might not make you 100% like some small capped lotto tickets; but they’ll get you started in the right direction–providing the dollar continues to get fucked and people delude themselves into believing China is back in play.
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Deep sea drilling is the most hated sector in energy. Coal is the most hated sector ever since dot bombs.$NE $BTU Are not total garbage names with huge upside if the dollar dies. Coal might need help in 2016 but might not.
Coal is dead. Might have bounces left, but don’t fight the trend… Natural gas is too plentiful, cheap, cleaner…
Coal is dead
Just playing for a rip in coal. But what if Natty goes to 5 or 10? Crazier things have happened.
Mr. Fly. Top hat and tails tomorrow? Watched Citizen Kane tonite. Preamble on TCM reminded that Mr. Wells was born May 6th 1915. Same year as Frank Sinatra – seems crazy .
Best movie ever made.
Rosebud was the nickname Hearst gave his wife’s vagina–btw.
Rimshot worthy
Some whispers of stagflation going around. Though way too premature.
Who the fuck is whispering such shit?
Dr. Fly – why VALE? I would have thought the negative free cash flow would have kept it out of the running.
Giant company and super leveraged to upside
Ok. Thank you.
It might be in preparation for the yuan becoming a reserve currency… blow off top etc. Not to mention all the China/Russia anti-petrodollar activity. Makes it seem like some money could leave US equities too, until more is printed, shrugz.
The wild card is “Golden Week” in Japan. Come Thursday the dollar death dive could come to an abrupt carry trade end. But truthfully do not know anything about it. Just dealt with these “markets” long enough to trust nothing.
Bullish as fuck on Copper.
Does FLY ever sleep? VALE & CLF had huge rallies today. Idiot Reader Class: Funny -Thanks for Brandenburg Concerto – putting me to sleep
“It’s bad enough you need to figure out how to boil a cup of soup, or melt cheese atop your elbow’d macaronis.”
Ha ha, at last, someone *gets* me!