3 Stocks to Buy That Love This Strong Dollar
These companies are benefiting from King Dollar
By Vince Martin
Source: Investor Place
http://investorplace.com/2017/02/stocks ... KfntPl96M8
"When the Fed chief says, pretty much unabashedly, that she's going to go to three rate hikes, and she sort of talks up the economy, and yet the market remains skeptical, that's telling me something"
Major political uncertainty surrounding the new Trump administration is weighing on the dollar. Such uncertainty regarding policy is also weighing on the fixed income market.
He would mark the dollar a sell so long as the yen fails to reach the 115 mark against the greenback. He points to the dollar-yen relationship as an important gauge of dollar strength, as weaker equity markets and yields are said to be associated with a stronger Japanese yen.
"As we see more disappointment, from Trump's policies and at the same time, the world outside the U.S. looks better, I think we're still going to see that continuation of dollar weakness. I
The dollar index is heavily weighted toward the euro.
"We do think the euro is heavily undervalued, with a chance that actually the ECB might taper in the second half of the year, then the euro/dollar should see a decent recovery,"
Schnider forecast the pair could rise to as high as 1.20 over the next six to 12 months; the euro/dollar was at 1.0622 in Asia morning trade
"The trend is your friend. The dollar went up 30-plus percent from lows in 2011. That's a big vote for a currency. Plus, President Trump does not want a stronger dollar."
Gundlach said he does not see stocks under severe selling pressure with the 10-year yield around 2.25 percent. But if rates rise significantly, that will likely touch off a selloff in stocks during the summer, Gundlach said.
On gold, Gundlach said he sees "another leg up" in prices and that "it is not a time to give up on gold."
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