Today I moved back into the US Dollar via ETF UUP. This is a trade I had profitably exited on 1/7/16 because it had broken support ( https://www.investablewealth.com/closed-out-overweight-us-dollar/ ).
The dollar is down around 2% since I sold it and I believe it’s time to move back in for a potential hold through 2016. The dollar is generally a stable currency and I believe worth holding during this global slowdown when it’s likely that other currencies will continue to devalue. This isn’t the type of trade with a huge upside, but rather a “safe” place to park some money with a better potential return than a money market fund.
The trade obviously has risk and at this time I’m not committing more than 25% of my portfolio.
Overall the indexes are holding up, with the S&P500 above 1850 the Bear threat is held at bay. ( https://www.investablewealth.com/correction-or-bear/ )
Expect some type of a relief or countertrend rally to occur before the markets move lower.
——————————————————————————
Listen to the Wealthsteading Podcast to receive updated market commentary:
The 10 Wealth Building Principles can be heard at:
http://www.wealthsteading.com/category/wealth-building-principle/
Subscribe to the Wealthsteading Podcast:
via iTunes: https://itunes.apple.com/us/podcast/wealthsteading-podcast/id896417058
Building Wealth, Investing, Retirement, Stock Trading, Money, Freedom
——————————————————————————