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, who may benefit from the drop in the dollar and a return of 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 sector, 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–proving the dollar continues to get fucked and people delude themselves into believing China is back in play.