Investment Thoughts: Expect the Dollar to Become Stronger - and Then Plunge

A recent article by Bill Buckler explains the recent strengthening of the dollar that we have seen. It's not due to interest rate hikes, but to US businesses selling off foreign assets to bring cash back into the country to pay off debt. That can only continue a short while - and then the dollar will hang with little support.

I suggest preparing for a future weakening of the dollar by investing now in silver and gold. Those with 401(k) accounts may be able to do that easily by investing in the ETF (exhcange traded fund) for gold: GLD. Metals stocks to consider include GG, SLW, NEM, and for palladium, SWC.

Meanwhile, some stocks that I think have significant upside potential: CPST, CELG, IMMR, CKMC, and FTK. For energy stocks, I recommend ATLS and EQT. Of all these, the one that I think is the most certain to grow significantly is CELG. The others should, and might grow much more than CELG in the next 6 months, but I think CELG will rise from its current 60 to over 70 within two months and maybe within two weeks. IMMR might shoot up Monday after hours with their quarterly earnings conference call at 4 PM Eastern today. Do your own due diligence.

Meanwhile, the terrorism threat needs to be kept in mind. Don't spend all your cash on stocks! Have some cash and commodities. Even without that threat, I think we'll be heading into a bear market within six months or less, and when it becomes obvious, you might have lost 10% of your retirements in a couple days. Be cautious, and in the middle of this emerging bull market, start backing out toward cash or commodities. That's my wild-eyed advice.

tags: investing  

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