Buy dollars even if stocks keep rising, says Goldman alumnus who predicted the financial crisis

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Need to Know: Dollar, bonds among few places to park money just now

It’s T-minus one day to jobs data, and further upward momentum for stocks appears to be partially riding on hopes we won’t see a repeat of February’s paltry payrolls gain in the U.S..

“Even if the stock market continues higher, it’s going to pump in capital from abroad,” he said in an interview with Real Vision, a TV service he co-founded. Europe, the U.K. and Japan all need to put money to work in the U.S., whether its bonds or the equity market, which should help the dollar “break higher,” he said.

As for his call to buy the dollar, he’s waiting for the ICE Dollar Index DXY, +0.11% which measures the value of the greenback against a basket of six major currencies, to hit 98. Investors can then bet on a dollar rally in a number of ways, the easiest of which is to buy it via an exchange-traded fund such as Invesco DB US Dollar Index Bullish Fund UUP, -0.15%

The chart If you get lucky timing the stock market — buying or selling assets by trying to predict where the market is going — it doesn’t make you a wiseguy, as our chart of the day, from iBankCoin blogger The Real Fly, shows. It lays out the performance of the Invesco QQQ Trust Series I QQQ, +0.57% an ETF that‘s based on the Nasdaq-100 index, between last October and nowish.

 

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Since the 'dollar' is only worth 3 cents now. I'll buy dollars from anyone willing to sell for 3 cents. Then I'll buy silver & gold

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