Between Dow Jones And Six Million Dollar Man 3
What does this all have to do with the stock market? In our opinion, the declining purchasing power of the dollar partially explains why the Dow Jones and S&P500 are rising. US stocks are relatively cheaper today for foreign investors. Stocks are also tangible, and in an inflationary environment, are perhaps a better place to invest capital, rather than in treasury bonds or cash.
We firmly believe there are too many US dollars in existence today within the financial system. The world is beginning to awaken to the fact that the intrinsic value of the dollar (if indeed it has any) has been greatly eroded in the past three decades. While we believe further falls in the dollar are highly probable, the Dow Jones Index could rise to between 14,000 and 15,000 in the next few years as the currency continues to depreciate.
In summary, as highlighted last week, our strategy continues to be biased towards large cap, internationally diversified stocks (e.g. Microsoft - note George Soros buying heavily this week), or stocks that produce products where prices are established internationally (BHP Billiton). We also favor the precious metal sector and in particular, gold stocks. While US equities may experience volatility in the near term, the inflationary cycle should drive the market to new highs towards the end of the year.
If The Six Million Dollar Man does make a return to television now, who knows; in a few years he might just be the Six Trillion Dollar Man.
IMPORTANT: This message, together with the Fat Prophets website and all its contents have been prepared for general information only, and as such, the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Individuals should therefore talk with their financial planner or advisor before acting on any information present on this message or the Fat Prophets website. Performance is hypothetical and based on recommendations made in the Fat Prophets report. The table is updated monthly. Transaction costs have not been taken into account. Past performance is not a reliable guide to future performance, and investors should be aware that returns can be negative. For a full explanation of the performance calculation methodology, please visit the Fat Prophets website.
By: FatProphets - Article Directory
Fat Prophets are leading global independent stock market advisors with a comprehensive product range of research reports for all investors. Get expert advice on investing in shares and managed funds.
We firmly believe there are too many US dollars in existence today within the financial system. The world is beginning to awaken to the fact that the intrinsic value of the dollar (if indeed it has any) has been greatly eroded in the past three decades. While we believe further falls in the dollar are highly probable, the Dow Jones Index could rise to between 14,000 and 15,000 in the next few years as the currency continues to depreciate.
In summary, as highlighted last week, our strategy continues to be biased towards large cap, internationally diversified stocks (e.g. Microsoft - note George Soros buying heavily this week), or stocks that produce products where prices are established internationally (BHP Billiton). We also favor the precious metal sector and in particular, gold stocks. While US equities may experience volatility in the near term, the inflationary cycle should drive the market to new highs towards the end of the year.
If The Six Million Dollar Man does make a return to television now, who knows; in a few years he might just be the Six Trillion Dollar Man.
IMPORTANT: This message, together with the Fat Prophets website and all its contents have been prepared for general information only, and as such, the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. Individuals should therefore talk with their financial planner or advisor before acting on any information present on this message or the Fat Prophets website. Performance is hypothetical and based on recommendations made in the Fat Prophets report. The table is updated monthly. Transaction costs have not been taken into account. Past performance is not a reliable guide to future performance, and investors should be aware that returns can be negative. For a full explanation of the performance calculation methodology, please visit the Fat Prophets website.
By: FatProphets - Article Directory
Fat Prophets are leading global independent stock market advisors with a comprehensive product range of research reports for all investors. Get expert advice on investing in shares and managed funds.
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