Wednesday, July 6, 2016

Elazar: Weak Dollar, Global Implications

*If the dollar collapses, many negative implications abound.
*Inflation, global currency risk, oil price lift and more are wrapped into one little chart.
*It looks like the dollar is about to drop.
We've been watching the dollar turnaround from its strengthening. Now that it is weakening and, we think, about to break down, there may be multiple ramifications negative to the markets (NYSEARCA:SPY). We will name a few.
Here's the latest euro (NYSEARCA:FXE) versus dollar (NYSEARCA:UUP) chart.
This chart tops the Official Elazar Global Scary Implications List.
First, The Good
We did say that a weakening dollar post-Brexit is a sign of calm...
Then, The Bad
... but with a weakening dollar, we see multiple negative consequences.
1) Japan is threatening to unilaterally protect their currency by selling yen. PM Shinzo Abe told Finance Minister Taro Aso to take any steps to stem the bleeding.

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Chaim Siegel has been working with hedge funds and mutual funds as an analyst and PM his entire career. Chaim specializes in earnings and predicts, analyzes and reacts to earnings and earnings events as well as developing current company stories with a hedge fund perspective. If you want his analysis real time sign up to the right for real time email alerts. #in, $spy, $qqq, $iwm, $vxx, $ycs, $fxe, $EUO, $YCS, ^GSPC, INDEXSP:.INX, #elazaradvisorsllc, CME Globex: ES Disclosure: These trades can lose you money and principal especially when using leverage BY USING THIS SITE YOU AGREE TO TAKE ALL RESPONSIBILITY FOR YOUR OUTCOMES AND LOSSES AND HOLD BESTIDEAS, ITS CONTRIBUTORS AND ELAZAR ADVISORS, LLC HARMLESS