Loading ...The US stock market today opened to what appeared to be controlled panic. The dollar rallied as the equity markets sold off pre market and at open. This trend however was quickly reversed as the dollar started to weaken; the market found a floor and bounced higher.
The case for the bull and bears are both convincing. On the bullish side, the real story is the dollar, how it will get weaker to support the equity markets. As long as the rest of the world trade commodities based on the dollar, it will behave inversely proportionate to equities to some degree. On the bear’s side, we just had the greatest 6 month bull market run (sense the last great depression. In addition, the economy is still getting weaker, just at a slower rate.
For us however, the real story is will Rio or Chicago get the 2016 Olympics. It really should be a no brainer that Rio is selected. The US has hosted the Olympics 8 times, Euro 33 times, Asia 5 and Pacific Rim 2. Only South America and Africa have not had the opportunity to host the game. What this means to investors is go long the Brazilian Real and Short the Pound.
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