DXY Crash

The DXY has crashed It peaked in march and now is down 6% from the high. This means it takes more dollars to buy the same value. More dollars for same value is called inflation. More dollars for same value means stock prices go up but the value contained does not. Effectively this is a buy high result and is the basis of FOMO. FOMO is a greater fool strategy. You buy now in the hopes a greater fool will buy from you later. Passive index investing is a greater fool strategy as well.

Hertz is a perfect example. DEAD company with DEAD stock being bid up to 5 bux a share in a greater fool strategy, because there is always some dumbass who will buy my dead stock at 7. There’s always a dumbass until there isn’t and your $5 stock is now worth $2. In the mean time the cost of bread goes from $2 to $5 because inflation. The dollar crashed so by definition a less valuable dollar buys a lower value of goods. The smart money would have bought wheat or grocery stores or bread companies. In a time of inflation Shell oil might look good also.

In a time when GDP is crashing AND DXY is crashing, bad juju.

In addition I was just on a call regarding the economy. It turns out we now need to take out $7.50 in credit for every $1 increase in GDP. Now that’s what I call diminishing returns.

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